Payment Terms

[Former Member]

Hello Gurus,

What is the purpose of maintaining payment terms at 2 different places in CMD?

thanks in advance

regards

Prashant Ranalkar

[Former Member · Accepted solution]

Hi

The use of maintaining Payment terms in 2 places of CMD has some importance.

First use:

Payment terms maintained in Sales Area Data is used to get the customer payment due date details whenver an SD invoice is created and an accouting document is posted into FI. This is purely SD module transaction.

Second use:

Payment terms mainatined in Company code data is used to get the same customer payment due dates details whenver an invoice is created from FI side. There are few chances that FI also can post customer invoices directly from their module. For this purpose the payment terms mainatined in company code data and is used to capture the due dates.

Hope the above helps you to understand why payment terms are mainatined in 2 places.

Regards

Rajkumar K

[aramsum]

Hi Prashant,

The above statement about the payment terms is correct. We maintain the pay ment terms in Customer Master, Vendor master and in Customer master in company code view and sales view. This will allow the system to propose the payment terms based on the business transaction. If it is a sales Invoice, It would pick the payment terms from Sales View or If it is an FI invoice(Which can be posted directly in FB01, Then it will take Payment terms from Company code View. Kindly please let me know If you need any more Information on this.

Regards

Ram Pedarla

[Former Member]

Hi,

As far as I am aware of this I think that the payment terms is maintained in company code and at sales area level because of the reason mentioned below.

When a document is created a sales area, if the payment term is maintained in the sales area then the document picks up the payment term from that specific sales area. In case if the payment term is not maintained in the sales area data and is maintained in the company code data, the payment term is picked up from the company code data.

If the payment terms is maintained both in the sales area data and the company code data, then the system will pick up the payment term specific to the sales area data rather than the companycode data.

Hope this helps you to clarify the doubt.

[aramsum]

Hi Prashant,

Please find the explanation below.

" Master records have separate areas for Financial Accounting, Sales, and

Purchasing. You can specify different terms of payment keys in each of

these areas. When you then enter a business transaction, the application

in question will use the key specified in its area of the master record."

Hope this helps.

Regards

Ram Pedarla

[Former Member]

Hello

Can you explain what is the implication of payment terms in company code tab of CMR and What is the implication of payment terms in Billing tab of sales Area data of CMR.

I want to know which transaction will it impact.

Regards

Prashant Ranalkar