Payment terms

[Former Member]

Hi Experts,

I selected following payment term in sales order -

pay within 14 days 2% cash discount

within 30 days due net

I am going to bill this order.

How does the system calculate amounts using payment terms?

Is it going to calculate basing on order date or billing date?

Is there any customizing step for this in SD?

[Former Member · Accepted solution]

The configuration for payment terms in not done in SD but done in FI module.

The transaction code is OBB8.

While designing your payment terms, you design at 'default baseline date group', the date from which payment of terms apply. You have different options.

For SAP standard payment term 0002, document date is the baseline date.

Document date is nothing but invoice date or billing date.

[former_member217082]

Hi jack

we will calculate the payment terms from the billing date.

Payment terms will be configured by the FI consultants

As in your example you have taken the payment terms 0002 which is 30days from due net.So once you do invoice you will be passing on to FI.

The FI consultants can see the payments terms in the accounting document when the customer pays the amount to the company then as per the payment terms he will get discount

Regards

Srinath

[Former Member]

Dear Jack ,

Your query is very intresting indeed,the system will calculate with the billing date as the reference ..

Can you throw some light, when you are working with this scenerio,

in 14 days and 2% discount,

Will the amount due from the customer will come with 2 % discounts if he is paying in 14 days......

How this scenerio is configured...........is there any discount type to be configured in the pricing.

regards,

Amlan

[Lakshmipathi]

Dear Jack

Payment terms will always be from billing date if it is domestic sales and Bill of Lading Date if it is exports. So in your case, if the customer pays within 14 days from the date of billing, you need to give 2% discount and no discount if the payment is received after 14 days but before 30 days.

thanks

G. Lakshmipathi

[former_member335885]

HI,

The payment terms is calculated based on sales order document creation date.

In this case it states that if the customes pays within 14days it is liable for 2 % discount. or if he as to pay within 30 days the due amount fully.

Thanks & Regards,

Kiran

[Former Member]

hi jack,

it is going to calculate on the basis of billing date

thanks,

krishna prasad