Payment Term requirement

[Former Member]

Hello All,

I have a requirement to create a new payment term:

2%, due upon receipt (vendor is allowing 2% discount on all invoices)

is it appropriate to set up an ordinary payment term as usual? is there a possible work around for this.

Thanks,

Munair

[Former Member · Accepted solution]

Hi,

you can use the Standard Payment Term which has same condition or else you can create A new Payment Term in OBB8.

Thanks

Goutam

[atif_farooq]

Dear:

If you want to give discount on the face of invoice , i mean at the time of payment against invoice then you will have to create SKTO condition in V/06 and then create Payment term in OBB8. Assign this payment term in PO for the vendor and then do MIRO . Now invoice will be raised with 2 % cash discount which will given at the time of payment.

Regards

[Former Member]

I want to add some corrections to the requirement mentioned. The discount is indefinite. So no matter when the invoice is paid, vendor authorizes the discount to be taken. If I mention 2% and No. of days as 0 (zero), will this work, or will system not validate the discount since the days are -0-? Please advice best course of action on this.

Thank you

Edited by: Munair on May 18, 2011 1:48 PM

[atif_farooq]

Dear:

The basic purpose of payment term is aging of vendors & customers invoices along with their discounts. However if you want only discount to be free from days restriction then you can write 999 against percentage in OBB8 but if you make it ZERO then system will not let you post discount since cushion given to avail discount is zero. 999 days i think infinite for any payment term .

Regards

[Former Member]

Thank you for your answers. I was able to create a standard payment term with the days blank and it is working with no days restriction. So in effect, its allowing discount for invoice with any date.