Different payment terms needed after the Invoice

[Former Member]

Dear All,

We want to have a two different Payment term for a Customer.

Our requirement is to have a Payment Term till invoice which is sent to the customer, and need an another Payment Term while we are recive the incoming payment.

We know that, in Company code data view, it is possible to maintain a different Payment Term apart from one which is maintained in Sales area data view.

But the Payment Term maintained in the Company code data view is mainly for FI invoices I believe.

Kindly suggest me a solution to maintain a different payment term after the invoice.

Regards,

Mullairaja

[Former Member]

hi raja,

there is little confusion in your query.

We want to have a two different Payment term for a Customer. - ok.

Our requirement is to have a Payment Term till invoice which is sent to the customer, and need an another Payment Term while we are recive the incoming payment. - ? that whiile creating an accounting document or interfacing to FI you need to change payment terms - please correct me if i am wrong.

if you want to bill the customer via FB70 then it will consider company code data payment terms - this is a different story all to gether.

Regards,

balajia

[Lakshmipathi]

need an another Payment Term while we are recive the incoming payment.

Can you please enlighten more on this ?? Why you want a different term for incoming payment ?? In any sales scenario, customer has to effect payment to their seller based on the payment term what has been indicated in the billing document.

Your guess is right on the Payment Term in Company Code Data which will be considered only if you generate billing from FI.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi / Balaji,

Till invoice I am clear about the process, but after that, I am not sure where we have a possibility to change the Payment Term.

But let me explain our requirement.

We are creating invoices to the customer from our Chennai plant and send it to our Delhi warehouse, from there, customer will pick the goods (We are not following Consignment Process and Stock Transport Order). Somehow we are managing all the legal problems.

So while creating the Invoice from our plant it will have some date and the payment term will be 30 days, but the customer physically receives the goods may be after 60 days which is delivered from our warehouse.

From the date cusotmer receives the goods physcally, they will take 30 days to make their payment. But literally our finance department is getting the payment after 90 days.

So, to manage these conflict, we planned to have two different payment terms.

Kindly suggest.

Regards,

Mullairaja

[Lakshmipathi]

If I understood your explanation correctly, you raise a commercial invoice from your chennai plant itself but the goods would be unloaded in your Delhi warehouse from where you again move the goods to end customer depending upon the requirement.

If my above understanding is correct, then what I would suggest is that either you can stock transfer the material to your warehouse and as and when the materials are pulled out, you can raise a commercial invoice with the correct / requirement payment term.

On the other hand, you create a new payment term as 60 days from the date of GRN. You can assign this payment term as and when you generate billing document from your chennai plant. But from my experience, I can tell you that no seller will receive the payment before the due date. This is also considering the fact that there will be some internal process delay in seller's side.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

Your undestanding is correct. Thanks for your advice. I can understand the situation. Even I have suggested the same solution, but our company is not willing follow this because of some untold reason.

They are seeking for the solution what I have asked initially. I dont know how to change the payment term after the commercial is created.

Regards,

Mullairaja

[Lakshmipathi]

You have not indicated as to whether with one invoice from chennai plant, material will be unloaded in Delhi warehouse and from there, it will be despatched to end customer again.

If that is the case, why dont you consider creating proforma in the first stage where you can maintain any payment term which will not have any impact in FI. Once the material is being pulled out from warehouse, you can generate a commercial billing document with the required payment term.

Of course, for this, you need to have proper copy controls in place.

thanks

G. Lakshmipathi

[Former Member]

hi,

yes lakshmi pathi sir is 100% right.

to add some point on this.

after generating an out put in chennnai plant lets take 30 days of payment terms.

in between make the field open always if it is greyed.

after going to delhi plant change the payment terms and give another print out there.

or

create two condition types with respect to payments terms.

like CHN1 for chennai.

and ODL2 for delhi.

and hard code in program that for CHN1 it has to take chennai out put.

and for DELHI it has to take delhi out put.

please check and confirm the forum.

regards,

balajia

[Former Member]

Dear Lakshmipathi,

Thats correct, but the problem is, while we are removing the goods from the Plant, we need to pay the Excise duty to the excise authorities.

Thats the reason we tend to create invoice, otherwise we would have preferred Proforma Invoice.

What will be the procedure to transfer the stock from Plant to warehouse?

I hope this procedure will work out..

Please confirm.

Regards,

Mullairaja

[Former Member]

HI

You have to go for a Zee report for Ageing analysis and also for payment terms.

What i can suggest is have Zee table with invoice number and date and GRN date of the customer in the same report have an option to enter the days so that you can enter the days for receiving the payment , so you can calculate the payment date just by adding the number of days to the GRN date as it will be due date.

Create a back ground job for every day so that due date is calculated

I had the same scenario in one of my project.

We acheived the same with the above

Hope you are into Automobile component industry

regards

Prashanth

[Lakshmipathi]

Please dont get confused with proforma and excise invoice. Entirely they are different. Proforma is a document that you would be generating in VF01 (Document type F8) by referencing the preceding document (Delivery). Once you generated this, you can very well generate an excise invoice in J1IIN referencing this proforma.

As I said earlier, commercial invoice can be generated as and when the goods are despatched from Delhi warehouse to end customer with the correct payment term. By this, definitely, your issue will get addressed.

thanks

G. Lakshmipathi