Day Limit in Payment Terms

[Former Member]

What is the "Day Limit" in Payment terms.

If there is multiple day limit for a single payment term,which will be determined in the sales order?

With Regards

[Former Member · Accepted solution]

Dear,

To do business with customers and vendors, an organization needs to configure and manage payment terms in their SAP system. The organization also needs to change certain parameters in customer pricing as dictated by the market.

It is essential to monitor the payment term configuration changes and other critical field value changes such as day limit, cash discount percentage rates, and payment period, to prevent AR/AP instability and deficiency in the business process.

This control reports the details of frequent changes made to the payment terms, and the users who initiated these changes.

Customer payment time-frame allowed and the discounts amount given for early payment if any.

Day Limit - e.g. if you enter 15

An invoice date on or before the 15th of the month are payable on the last day of the next month

An invoice date after the 15th of the month are payable on the 15th of the month after the next month.

Regards,

Syed Hussain.

Visit: http://help.sap.com/saphelp_40b/helpdata/en/e5/0783ce4acd11d182b90000e829fbfe/content.htm

Edited by: Syed Hussain on Oct 7, 2008 6:54 PM

[Former Member]

Purchase order will just so all the day limit but when you post the invoice that time based on the invoice date system will take the discount defined inthe payment term based on the days limit

e.g

your payment term is

10 day 5 %

20 day 2 %

30 days 0 %

now suppose you are posting the invoice after 10 days than system will pull the discount 2 %

that's how system is works