Discount and Payment Terms
Terms of payment are conditions agreed between business partners for the payment of invoices.
The terms of payment enable system to calculate the Cash Discount and due date for paying the invoice.
In order to do the a/m the system needs the following data.
- Baseline date: date from which date starts
- Cash discount terms
- Cash discount percentage rates.
When you process a doc you enter the terms of payment so that the system can calculate the required conditions of payment.
The terms of payment are:
- Defined/entered in company code segment, sales area segment or purchasing org segment of a customer/vendor master record.
- Proposed when you post document
- Entered manually
The terms of payment default when you post an invoice and depends on where the invoice was created, FI (terms defaulted from coy code seg), SD(terms defaulted from sales area segment) or MM ( terms of payment from purchasing organization segment are defaulted)- further copying of these terms from SD or MM to FI is done automatically.
Creating Fixed Discounts
In addition to fixed discounts, volume discounts are also often applied to products sold. In this example, the direct price of this sales organization is $1000.00. To have this price apply to orders under 50 units and a lower price for a larger orders, the system must be configured to reflect this new information. This configuration can reflect as many steps as necessary to represent the pricing scale for each product in each distribution channel. Price discounts are entered as a percentage discount off regular prices.
From SAP Easy Access: Logistics -> Sales and distribution -> Master data -> Conditions -> Create
On this screen, drill down further:
Discounts/Surcharges -> By Customer
Click the Materials with release status button. Now ensure the correct sales organization and distribution channel for the customer has been selected. Select the customer and click enter. Select the line item that has now been automatically filled in and click the scale button (looks like a staircase, upper left of screen). Alternately, F2 is the keystroke for this command.
Now enter the order amount at which the first discount takes effect, 50 in this example. Now tab or click to the next column and enter the discount rate, 6% in this example. Click or hit enter and proceed with all the same steps for each discount and range. The final quantity discount scale for this customer was 6% off for orders over 50, 10% off for orders over 100, and 15% off orders over 1,000.
Click save to return to the fast entry screen.
Repeat this process to apply any discounts to other customers in the system.