Working of payment terms

[Former Member]

Hi,

I would like to know how I can find out the working of the Payment Terms.

For instance a payment terms is defined - how does it exactly work and where can I check this in SAP?

Where can I find out how payment terms are set up, and whether the payment term is actually used for what it is intended for?

With regards,

Corina

[mithu_mukhejee · Accepted solution]

hi C. van der Wijst ,

For just an information,payment term is an unit which is used for customer to pay service provider .

for an simple example: you have ordered for a asset or a material.

service is asking you to pay within 1 wk (terms & conditions applied- for 1 wk - 10 % discount)

if not then 15 days(terms & conditions applied- for 15 days  - 2% discount)

or else 30 days (net pay without any discount )

or

may be payment terms are just applying for payment immediately .(no terms & conditions are applied further)

so ,terms of payment is just to simplyfy how customers will pay or to make their way of payment easy or comfortable.

It is always decided by the service only.

in SAP,OBB8

it is consisting of key & description,And the condition how the payment is going to be done.

Yes there you will also have to mention the account type (customer/vendor)at the time of payment term configuration.

for more clarification just reffer SAP help file .

thanks

Mithu

[mithu_mukhejee]

THanks C. van der Wijst for the all aprreciations:)

[former_member184065]

C.Van Der,

If you search in Google with Payment Terms in SAP,you can get Number of Posts relevant to this Topic with Examples.I saw so many threads concern of this topic with examples in Google.

Why all people eager to give answers for this query, I don't know.

Anyway,Please don't encourage .

Thanks

Naren

[mithu_mukhejee]

Hello Narendra,

nice to get your suggetion.

Knowledge is only to share not for an hope or practice.

I hope You will understand.

[former_member184065]

Hi,

Oh Surprised ...............! Me

[mithu_mukhejee]

HEylo ,

It sounds sarcastic.....:)

Anywys knowledge speaks so u spoke ....never mind

[suman_sardar2]

Hi Corina,

Apart from these above info you can also use Payment Term Configuration as Installment based payment either for Customer and Vendor.

This can be done with the help of OBB8 and OBB9.

Please see the below document and you will have some idea.This will also help you in the configuration.

INSTALLMENTS PAYMENT - Payment Terms & Document Split

http://scn.sap.com/docs/DOC-32071

Thanks,

Suman Sardar

[Former Member]

Hi Corina,

Payment Terms are defined in OBB8.

   1. This will help in calculating the Invoice due date

   2. This will also help in giving the cash discuounts to the customers (for early payment)

Payment Term will be maintained in Customer Master

Payment Term will flow into Sales order and Billing Document

When Billing document is created, basing on the payment term, it will determine :

It calculates the due date for the invoice

If he pays within 10 days - give 10 % cash discount (etc)

Hope this helps.

Regards

Raju

[jignesh_mehta3]

Hello Corina,

Payment Terms are set in T-Code OBB8.

For explanation refer the the below document: http://scn.sap.com/docs/DOC-31997

Thanks,

Jignesh Mehta