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payment terms

Hi all

What is the practical significance of the payment terms? I mean what haapens practically, if a customer does not pay as per his payment term?

Say a customer's payment terms is that he should pay all the money for this order within 30 days. Wat happens if he does not pay within 30? It must impact on the sales order right? how?


Former Member
Former Member replied

Hi ,

There is not much of practical significance of payment terms in controlling the sales process of a customer ,its more or less like an info to the Finance people that in case an order is processed till billing and the payment terms is given as 30 days ,in FBL5N the customer account shows as open till 30 days after which if the payment is not made the status is shown as due ,but still there is no control for this, thats the reason we go to CREDIT MANAGE MENT for having control at various levels, Hope this would solve your query.


vinod charles

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