Payment terms in customer master.

[Former Member]

Hi

In customer master, we have the payment terms in sales area data and in company code data.

I have gone through the forum related to this question. However its not solving my query.

My question is why we need to maintain payment terms in both sales area data and in company code data? Why I am asking this question is in all the cases I see both the payment terms are same.

What will happen if the payment terms is maintained only in sales area data or in company code data?

How the payment terms work here in customer master?

regards

Ram

[reazuddin_md · Accepted solution]

As you aware,

Business can have various types of Customers such as SD Customers / FI Customers.

FI customers are those to whom we provide the different services, may not needed to dispatch the goods. Payment from/to these type of FI Customers will be done through FI transactions, No need to follow the SD route.

So Payment terms will be triggered according to the usage of the Customer, whether you treat specific customer as SD customers ( via sales transactions) or FI customer (via FI transactions).

If you use this customer in any SD transactions, "Payment Terms" from Sales area data of Payer will get triggered & will be copied to respective FI transactions.

Where as If you do FI transaction for this Customer, "Payment Terms" will be copied from Company Code data of payer.

Hope it clears,

Regards,

Reazuddin MD

[Former Member]

hi

we can maintain different payment terms at company code and sales area level

Payment terms maintained in the sales area data are relevant when you are creating billing documents for the customer

Payment terms in the company code data are relevant when you are posting an FI invoice without sales transactions.

For e-g when you are probably seling scrap to the customer and you would not like to create a sales invoice for that. In this case, the FI payment terms will apply

when you are selling normal goods to the customer via sales invoice, sales payment terms will apply.

[Former Member]

Hi Wish,

Thanks a lot for clearing me with an example.

As you said, for sales transactions the system will take the payment terms from sales area data.

Why I have to maintain the payment terms in the company code data if I am selling a product thru normal sales process.

Can I maintain the payment terms in company code data alone, if I am doing a scrap sale where the FI invoice comes.

Regards

Ram

[Former Member]

ya u can do it but sometimes FI ppl do post invoice without reference to any sales document that time u need it

[Lakshmipathi]

Why I have to maintain the payment terms in the company code 
      data if I am selling a product thru normal sales process

It is not required but enough if you maintain in sales area.

Can I maintain the payment terms in company code data alone

Yes if you want to generate an invoice via FB70, then system will consider this area only.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

Thanks a lot for your valuable reply.

regards

Ram

[Former Member]

Hi Ram

Ideally the Payment Term should be a mandatory field in both the company code view and sales area view of the customer master. The payment term is normally the same in both. But the way the system behaves is like this.

While creating any kind of sales related transaction (internal application V in SAP) whenever payment terms are required the system takes the sales area payment term. When the application is finance ,lets say you create a customer invoice (DR document) in FI then the payment term is taken from the Company Code data.

Thanks

Indranil

[Former Member]

Hi all

thanks for the reply.

Can you explain with an example?.

regards

Ram