Change of Customer Payment Term

[former_member1279634]

Hi Gurus,

We are planning to change the payment term of our customer accounts this October.

For example:

Customer A

Payment term last September is payable in 20 days.

October 10- payment term was changed to 10 days

Kindly advise if the postings that were already made from the previous months will be affected if we change the payment term of that customer? Or will it only affect the postings that will be made after the change in payment term was executed. My worry is that the computation of net due date and amount will be affected if we change the terms of payment.

Thanks,

Ellicec

[atif_farooq · Accepted solution]

Hi:

Payment terms are copied into Sale order from payment terms maintained customer master data at sale organization level..Whatever you give in their is copied to sale order and is taken to billing document and once document is posted it starts appearing in posting document line item in FI...Baseline date calculates the aging of open items standing in customer ledger ...If you change the customer payment term then there is no issue..its a normal business process to do so...It will not affect already existing data ....Invoice posted with new payment term will have their own aging in ledger..Hence you can carry on with their change, From control point of view just make sure that none should be allowed to payment term or base line date in a posted document. This can be prevented using document change rules in OB32...I hope it will help you.

Regards

[former_member184555]

Hi

To my knowledge, the only purpose of maintaining the Payment Terms in Sales Area Data of customer master is just for defaulting the value in sales documents. The payment terms value in the customer master will not have any impact on postings. You can change the defaulted value of payment terms in the sales order and can have a different payment terms for different line items also. i.e., same sales order can have different payment terms for different line items.

Thanks,

Ravi

[jignesh_mehta3]

Hello,

The Postings made from Invoice of Previous months will not be effected, as the old Payment terms (20 days) are already recorded in Invoice documents.

The new payment Terms (10 days) will only effect the Postings made after the change of Payment Terms.

Hope this clarifies,

Thanks,

Jignesh Mehta

[Former Member]

Hi,

Can you tell me what time in Sept the payment terms or the billing is posted and now in Oct it is only an extension to 10 more days - if that is the case then i think only the payment due list will get reassigned. And this payment terms will be check at FI level - i dont think you can change the SD terms of payment

regarsd,

Sudhir

[Former Member]

Hi,

As per my knowledge if we change the customer payment terms in between it will effect the all open items.

please correct if any one found my sentence wrong.

regards

Ram