This document outlines various payment terms parameters used to calculate payment due dates, including:
- Baseline date calculation parameters like fixed calendar day and additional months
- Indicators for different proposed baseline dates
- Terms for installment payments that split invoices into partial amounts
- Cash discount percentage rates and days from the baseline date for early payment discounts
- Fixed dates and additional months for special payment conditions
- Default payment blocking reasons and payment methods
- Day limits that define cutoff dates for different payment terms
This document outlines various payment terms parameters used to calculate payment due dates, including:
- Baseline date calculation parameters like fixed calendar day and additional months
- Indicators for different proposed baseline dates
- Terms for installment payments that split invoices into partial amounts
- Cash discount percentage rates and days from the baseline date for early payment discounts
- Fixed dates and additional months for special payment conditions
- Default payment blocking reasons and payment methods
- Day limits that define cutoff dates for different payment terms
This document outlines various payment terms parameters used to calculate payment due dates, including:
- Baseline date calculation parameters like fixed calendar day and additional months
- Indicators for different proposed baseline dates
- Terms for installment payments that split invoices into partial amounts
- Cash discount percentage rates and days from the baseline date for early payment discounts
- Fixed dates and additional months for special payment conditions
- Default payment blocking reasons and payment methods
- Day limits that define cutoff dates for different payment terms
This document outlines various payment terms parameters used to calculate payment due dates, including:
- Baseline date calculation parameters like fixed calendar day and additional months
- Indicators for different proposed baseline dates
- Terms for installment payments that split invoices into partial amounts
- Cash discount percentage rates and days from the baseline date for early payment discounts
- Fixed dates and additional months for special payment conditions
- Default payment blocking reasons and payment methods
- Day limits that define cutoff dates for different payment terms
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PAYMENT TERMS OBB8
EG:
BASE LINE DATE CALCULATION:
FIXED DAY: Calendar Day for the Baseline Date for Payment Calendar day with which the system overwrites the day of the baseline date for payment of the line item.
Additional Months Number of months which the system adds to the calendar month of the baseline date for payment.
Indicator: No default for the base date
Indicator that no default value is required for the baseline date for payment. You then have to enter the base date manually during document entry.
Indicator: Propose posting date
Indicator that the posting date is to be proposed in the base date field during document entry.
Indicator: Propose document date
Indicator that the document date is to be proposed in the base date field during document entry.
Indicator: Propose entry date
Indicator that the entry date is to be proposed in the field "Base date" during document entry.
Indicator: Term for installment payment
Indicator that the invoiced amount is to be broken down into partial amounts with different due dates.
Use Terms for installment payment are used as an entry tool when entering documents in Financial Accounting. Instead of entering several line items, you only enter the data for one item. The breakdown is carried out by the system automatically by means of the payment terms.
Procedure Set this indicator if several items with different due dates are to be generated from one line item when using this payment term.
Dependencies For all payment terms that stand for an installment payment, the percentage specifications must be defined for the breakdown of the total amount. In addition, you must specify which payment terms are to be valid for the resulting partial amount for each percentage rate.
Cash Discount Percentage Rate
Cash discount percentage rate which is granted for payment within the specified period.
Days from Baseline Date for Payment
Number of days following the baseline date for payment after which the payment must be made in order to make use of the corresponding cash discount terms and/or to pay within the due date for net payment period.
Fixed date: Due Date for Special Condition
Fixed calendar date as part of the date on which the first or second cash discount period ends and/or the date on which the due date for net payment is reached.
Additional Months for Special Condition (Term 1)
Number of months which are to be added to the baseline date for payment in order to determine the end of the first or second cash discount period and/or the date on which the due date for net payment is reached.
Payment Block (Default Value)
Default value for the payment blocking key.
Use When entering postings to a customer or vendor account for which the terms of payment key displayed has been entered in the master record, this blocking reason is proposed together with the terms of payment. If you enter the terms of payment key later in the line item, the blocking reason originally entered has no effect.
Payment Method The payment method determines how payments are to be made, e.g. by check, bank transfer or bill of exchange.
Use Payment methods are entered in the master records of customers and vendors in order to specify how payments are made. If an open item is to be paid using a specific payment method, enter it in the open item. The terms which have been defined for the payment method must be satisfied for the payment.
Procedure Payment methods are to be defined in the Financial Accounting configuration menu, where the following steps are to be carried out: 1. First of all, make all specifications that are required for a country-specific payment method. 2. Then define per company code the terms under which a payment method can be used. All payment methods are displayed in the customer or vendor master record in the screen for selecting the payment method. Here you select the required payment method by marking it; the system transfers the payment methods to the customer/vendor master record.
Day Limit Day of the month up until which the corresponding terms are valid.
Use For terms of payment which depend on whether or not the baseline date is after or before the 15th of the month, you can define a two-part payment term under the same terms of payment key. The terms of payment key is expanded by the day limit entered here. Thus there are two entries in which different terms can be specified.
Example The following terms of payment require you to enter a day limit:
Documents with an invoice date on or before the 15th of the month are payable on the last day of the next month
Documents with an invoice date after the 15th of the month are payable on the 15th of the month after the next month.
