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Doubts on Cash Discount

Former Member
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Hi.

I have some doubts on Cash Discount.

1.Why we make the SKTO and SKTV condition types as statistical in Pricing procedure.

2. How the system determines the values from the Payment terms in sales order.Where is the linking?

3. After receiving the payments from the customer how the system settle the accounts?For eg we have sent the tax invoice to the customer for Rs 1000. and the payment term is that if he pays back within 10 days then he will avail 10% discount. Now the customer paid on 9th day, so he will avail the discount 10% and the company received Rs 900 from the customer . In this case how the system settle Rs 100., becoz already the accounting doc had generated for Rs1000 when we sent the invoice.

Please clarify.

Regards

Debasish

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Answers (1)

Answers (1)

Former Member
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Some inputs to your queries are:

1.Why we make the SKTO and SKTV condition types as statistical in Pricing procedure.

- Because you dont want the values to effect your net pricing either in the sales order or in the billing as this discount is not meant to be passed to the customer upfront. It can be passed only when the customer pays within the due date.

2. How the system determines the values from the Payment terms in sales order.Where is the linking?

- Based in the hard coded features that SAP has done for all condition types having Condition category as 'E - Cash Discount', the percentages are picked up from the Terms of Payment table. So it is hard coding that is working behind the scenes.

3. After receiving the payments from the customer how the system settle the accounts?For eg we have sent the tax invoice to the customer for Rs 1000. and the payment term is that if he pays back within 10 days then he will avail 10% discount. Now the customer paid on 9th day, so he will avail the discount 10% and the company received Rs 900 from the customer . In this case how the system settle Rs 100., becoz already the accounting doc had generated for Rs1000 when we sent the invoice.

- When you take the incoming payment postings, the system will post the following

Debit Bank/Lockbox account - 900

Debit Discoutns/Cash Doscounts - 100

Credit Customer - 1000

Hope this helps