payment terms

[Former Member]

Hi,

I have seen payment terms field in customer master record in two places. one at the company code data and second at the sales area data billing tab.

can any one explain with a sufficient example why we have to give two payments terms.

thanks

Devi reddy

[Former Member · Accepted solution]

Hi,

explanation in detail.

Payments terms: Composite of cash discounts and payments periods.

To create payments terms TC:OBB8

Payments are maintained in company code data and as well as sales area data.

we can maintain different payment terms, the system take first from the company code data if the credit mangement is actived where the billings will happen for the FI side.

means if the system will trigger a message that customer is excess the credit limit at this time the system will pick up the company code data payment terms.

Remaining time the system will take the payment terms from sales and distribution.

Please check this and rewards points .

Thanks

Kuntla

[Former Member]

hi...

as a sales guy, we will maintain in billing tab in salesareadata...

it is automatically copied into salesorder....

Regards................

[Former Member]

Dear Reddy,

Here i am giving a small e.g.,

in Sales Area View Pay Ment Tems will use regular business scenarios means daily invoice. VF01

if compnay will introduce any seasonal schemes between perticular period then they will consider customer payment in centrally. at that time they consider Second one.

[Lakshmipathi]

Dear Devi Reddy

If you invoice via SD route, system will consider Payment Terms from Sales Area data. If you do invoice via FI route, then it will consider Payment Terms from Accounting view.

VF01 = SD Billing

FB70 = FI Billing

thanks

G. Lakshmipathi

[Former Member]

Hi,

Payment Terms which are maintained in both Compnay code data and Billing tab in Sales area data is same.

But the only difference is one will be done by Finance guy where as other will be done by Sales guy. If we give two different Payment terms in both the places. Then system will first take the payment terms what you maintain in Compnay code data.

If you dont maintian any this then it will look for Billing tab in Sales area data.

Try this, give two differnt payment terms in both the places, and create sales order, see which one is picking. and remove one and try again. Then you can understand the purpose of these two

Hope this is clear.

Thanks

Praveen

[Former Member]

Hi,

I guess the above explanation is sufficient. To make you more understand you need to know to in customer master, data would be filled at there different tab levels.

General Data

Company Code Data

Sales Area Data

General Data: Here we maintain the data related to both company code and sales organization level.

Company Code Data: Here we maintain the data related to company code level.

Sales Area Data: Here we maintain the data related to sales area level.

In real time Company code data maintained by the FI team and Sales area data maintained by the SD consultants.

Regards,

Vamsi