Payment Terms

[Former Member]

Hi SD Guru's,

I have a small query, in customer master we enter "Payment Terms - Say Pay immediately".

Now when i create an order for this customer and go to header overview screen and change the payment terms to say - 30 days from receipt.

How this impact the credit limit check in future agiant this customer?

Can please some1 explain in detail as to how we can handle this situation where the payment terms for a particular customer could change based on what he/she orders irrespective of the default payment terms maintained in the customer master?

Points will be rewarded

Regards

Ravi

[former_member184555]

Hi Ravi D Mansharamani,

Could you please post your final conclusion on your issue. Please post it, so that it will be helpful to many people in this forum.

Thanks,

Ravi

[Former Member]

HI!

I an addition to Sankar Ravi's reply. I would like to add a fact that terms of payment could also be controlled from pricing records.

Each pricing record has column called terms of payment. If you specify any payment terms in this column, then whenever this record is pciked, the line item will have this terms of payment.

Hence you can configure a pricing condition type and maintain it selectively for customers, hence whenever this pricing condition comes into the sales order, the terms of payment for this line item will come from pricing condition.

Hope this helps.

Abhishek

[former_member184555]

Hi

The payment terms from the CMR are defaulted in the Header and will be copied to the item level to all items. At item level we change the Payment terms because it varies from material to material. With difference in payment terms the billing split also takes place.

Regarding relation between Payment terms and Credit management -

As the way the system considers Horizon Period while considering the open sales orders, the Open Items are also considered based on the Horizon period. I.e., not all open items(released to accounts but not paid) are considered for credit check. The system will not consider those open items which are not due for payment because of the Terms of Payment.

This is my understanding....

Thanks,

Ravi

[Former Member]

It is also possible to set the pay terms on the VK11 / pricing record so when that defaults into the sales order line item for the material, the payterms will come with it there too.

LP