Days of Payment Terms

[Former Member]

Hi All,

I want to know the No. of Days according to <b>Payment Terms</b>.....

Path of the Payment Terms:

Goto SE11 and insert T. Code <b>V_T052</b> in Database Table......

Click on Display Icon....Now click on Contents (CtrlShiftF10)....

Now Display View "Terms of Payment" : Overview, window open.....that shows....

3 Columns with Payment Terms and Sales Text....Like....

2003 10 DAYS FROM THE DATE OF LR

Now Db Click on "10 DAYS FROM THE DATE OF LR", now new screen displayed...

In the Payment Terms screen....and shows:

Terms Percentage No. of Days ..............

1. 4.000% 10

2. 0.000% 45

Now, I want that How we calculate the No. of Days "45" .........

Thanks & Regards,

<b>Anil Kumar</b>

[Former Member]

Hi,

These are the calendar days. When you create a payment term, here you have a section for "default for baseline date". In this you click on the posting date or document date. That is the payment term comes into picture from the day the invoice is posted or the invoice document is generated.

<b>As far as your query</b> is concerned you are talking about the cash discount which is given to the customer inorder to drive the customer to do the payment at the earliest and avail more discount.

Suppose the total outstanding amount is Rs.10000/- What you will do is:

1. 10% discount if payment within 15 days. This means if the customer gives the payment within the first 15 days or on the 15th day then he/she will get an additional discount of 10% more aprt from the normal discount which was given to him/her while the sales order was created.

2. 5% discount if payment within 30 days. This means if the customer gives the payment within the first 30 days or on the 30th day then he/she will get an additional discount of 05% more aprt from the normal discount which was given to him/her while the sales order was created.

3. 0% discount if payment within 45 days. This means the customer will only get the normal discount and no additional discoutn if the payment is released after the 30th day and upto the 45th day.

<b>This discount structure</b> is totally decided by the management of the company. <b>As far as calculating the days is concerned</b> I have explained above in the payment term you have a section for <b>"default for baseline date".</b> In this you click on the posting date or document date. That is the payment term comes into picture from the day the invoice is posted or the invoice document is generated. Suppose you have chosen the document date. Now the invoice was created on 16/09/2007. This date will be used for calculating the no. of days which you have specified. The 45th day will be 30/10/2007. From here onwards you will start penalising the customer for any delay in the payment.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

hi anli,

the days are calculated over the calender. All days are calculated.

now i did not catch your question fully :

The payment term says - up to 10 days after LR they can pay 4 % less.

up to 45 days afert LR, they have to pay the amount.

after the 45 days, they are late in payment and they will get a ( mahnung ) reminder.

Hans