Payment terms in Customer Master

[Former Member]

Hi,

In Customer Master,we have payment terms field in Company Code View and Sales Area View.What is the difference between them.If i maintain different payments in those views,which has the highest priority.

Vinu

[Former Member · Accepted solution]

Dear Vinu,

The Terms of Payment what we maintain in Company Code Data is for financial reporting purpose. Where as the Terms of Payment maintained in Sales Area Data is actually call in Sales Order.

Incase we have maintianed Terms of Payment in Company Code Data & not in Sales Area Data, in Sales Order we will have to manually maintain Terms of Payment & incase if Terms of payment is maintained in Sales Area Data, but not in Company Code Data, it will not Impact Sales Order & the Terms of Payment maintained in Sales Area data will default in Sales Order, which is white field & can be changed in Sales Order if required.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi

Terms of payment key

Key for defining payment terms composed of cash discount percentages and payment periods.

Use

It is used in sales orders, purchase orders, and invoices. Terms of payment provide information for:

· Cash management

· Dunning procedures

· Payment transactions

Procedure

Data can be entered in the field for the terms of payment key in various ways as you enter a business transaction:

· In most business transactions, the system defaults the key specified in the master record of the customer/vendor in question.

· In some transactions (for example, credit memos), however, the system does not default the key from the master record. Despite this, you can use the key from the customer/vendor master record by entering "*" in the field.

· Regardless of whether or not a key is defaulted from the master record, you can manually enter a key during document entry at:

o item level in sales orders

o header level in purchase orders and invoices

Note

Master records have separate areas for Financial Accounting, Sales, and Purchasing. You can specify different terms of payment keys in each of these areas. When you then enter a business transaction, the application in question will use the key specified in its area of the master record.

[former_member183879]

The paymt terms at sales org has the higher priority in this context. This is tested and confirmed.

You can have a payment terms at the ccode level and at specific sales area level.

So while order creation, if there is payment terms available at sales area level, then that will be applicable, if not the same from ccode will be applicable.

Reward if this helps u