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.

  1. Baseline date: date from which date starts
  2. Cash discount terms
  3. 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:

  1. Defined/entered in company code segment, sales area segment or purchasing org segment of a customer/vendor master record.
  2. Proposed when you post document
  3. 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.


  1. Hi. I would like to know as to how multiple payment options could be configured in SAP for a customer (with or without discount) ? Can this logic be built into the customer master or a work around needs to be built? If work around is built, what are the controls to be built in this interface between SAP and workaround?


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