Cash discount in APP F110

Hi,
When I am processing vendor payment through Automatic payment transaction (F110), system is calculating vendor payment net of cash discount though the payment is overdue. For e.g., due date is 10th July 09, but I am processing payment 15th July, even in this case cash discount is being deducted out of payment made to vendor.
In FBZP we have not checked maximum cash discount. Even then why system is calculating cash discount for overdue payment.
Regards,
Nagaraj

You may also want to check whether there is a tolerance day specified in FBZP, on the same screen where you would check Max cash discount or tolerance group in master data, where grace days are allowed for discounts.

Similar Messages

Cash Discount in APP

Hi All,
I am trying to run F110 but encounter the following error message:
Account xxxxxxxxx requires an assignment to a CO Object.
Actually this is Cash Discount taken account which is appearing during APP run and of P& L Account .
I have already set an automatic account assignment (e.g cost center default) in txn OKB9 to avoid posting error , when the payment program posts the cash discount line .
Please advise what could I do to avoid posting error and throw some light on Cash Discount procedure.
Thanks In Advance,
Payal

You may also want to check whether there is a tolerance day specified in FBZP, on the same screen where you would check Max cash discount or tolerance group in master data, where grace days are allowed for discounts.

Cash Discount taken after overdue

Hi,
I am a supplier to an SAP customer.
Our Terms are 2% net 31, from receipt of the product.
They 'always' take the 2% discount, though often they write the check in 32-35 days (the weekends are not the reason for the delay, as they receive usually on Thur-Fri and cut checks on Wed or Thursdays)
My question is, I 'presume'   SAP has a configuration option on their system to
1) -- only take the 2% discount when they cut the check within 30 days of 'receipt' of the product into their warehouse. (they use SAP for GL, AP, Inventory, etc - so all information needed to make the correct payment is stored in SAP)
2) -- if the check is cut 'after' 30 days, the SAP system should pay the full amount.
Is my understanding correct on how the SAP system should be able to process?   They are a Unix based 'very large' customer, and are on a somewhat recent supported code level.
Can anyone advise me where this type of configuration is done in the SAP system?
Can this configuration be set at a 'global' level for all customers?
Can this configuration be set at a 'local' level for specific customers?
Thanks in advance for any ideas.
SAP Newbis

Dear SAP newbie,
herefollowing as the Discount functionality works:
FBZP   > Max cash discount ACTIVATED, during F110 the maximum cash
discount will always be done even if the due date is expired.
OBB8   > Term of payment   Term      Percentage   No. of days
                           1.        10,000 %      30
                           2.           0,00 %      60 !!!!!
                           3.
!!!!!this is important, if You don't insert the number of days of 60
linked to a blank percentage, the System will take always the 10,000%
even if the due date is expired
If You define by OBB8   >
Term of payment   Term      Percentage   No. of days
                  1.        10,000 %      30
                  2.
                  3.
the System teoretically should take the 10,000 of cash discount but if
during the invoice You insert manually the discount amount (technical
field BSEG-WSKTO), the system will take this amount instead 10,000 %.
I hope this can help You.
Mauri
Edited by: MAURIZIO BIANCOTTI on Mar 2, 2011 5:48 PM
Edited by: MAURIZIO BIANCOTTI on Mar 2, 2011 5:49 PM

Maximum cash discout in APP

plaese send me
What is maximum cash discount in APP?

Hello
Cash Discount Strategy
Use
When configuring the payment program you can always set up one of the following strategies for outgoing payments:
·        Make payments with the highest possible cash discount.
·        Make payments as late as possible even if this means losing cash discount.
·        Make payments according to a strategy which is somewhere between these two extremes.
If the highest possible cash discount is desired, flag the field Max. Cash Discount:
If you have specified a minimum percentage rate the payment program settles items only if the discount percentage rate entered can be reached in the current payment run. If not, payment is made when the amount is due net. If you wish to make payment as late as possible, enter 99 percent as the minimum percentage rate (during payment program configuration). This determines that payments are always made net.
You can also use the minimum percentage rate to define strategies that lie between the two extremes (maximum discount or due net).
Reg
*Assign points if useful

APP ERROR FOR CASH DISCOUNT PAYMENT TERMS

Hi,
I am facing problem in F110 - APP run for cash discount payment terms. The error is "Error in creating the payment document". Suggest a suitable solution.
Shripad

Dear,
This problem is often cause due to changing payment term in the document. Use transaction FB03 enter the invoice document got Environment>Document changes. If you see the payment term has been changed then restore the old payment term into the document.
Regards,
Chintan Joshi.

How to rounding the cash discount at F110 payment program

Dear All,
Can you explain me, how to rounding off or rounding up to nearest rupee the cash discount at F110. In APP, the cash discount used to be calculated according to Payment term. But it is calculating decimal amounts also. But as per the business requirement, the cash discount should be deducted in rupees only. It should not be in decimals.
Please remember, cash discount can not be edited at APP, because I have disabled the "Edit Proposal" option. I want the rounding the cash discount to be initiated through configuration only.
Request you to help me out.
Regards,
Venkata Reddy

Hi,
maybe T-Code OB90 is helpful but I guess this setting is not only for cash discount.
Best regards, Christian

F110 incorrectly grants cash discount to direct debit customers

Hi,
I am running F110 to execute direct debits for certain customers in Europe. Everything works fine except for one "error"
it consistently include cash discounts on customer invoices which are way past net due date. F110 run date = 8/10/10, next run date 09/10/10. And yes, additional logs in the F110 parameters are set. See excerpt from display log below:
            Due date determination additional log
Document 8130000238 line item 001 via EUR          300.00
Terms of payment: 07/01/2010   10 3.000 %   30 0.000 %    0
Customer receivable is payable on 07/11/2010 with cash discount terms 1
   Include customer items due by 09/10/2010
Item should be paid now
Item is due with 3.000 % cash discount
All other invoices are calculated correctly. For the above, the cash discount base is set correctly What could be wrong?
Johan

Posting date is todays' date (e.g. August 10th, 2010).
This is a large Retail implementation with very fragmented areas of responsibility. I have checked all known posts and blogs and come up with nothing. Payment terms and payment methods are both present in the customer master record. When I run the Payment Proposal today with only two customer invoices to be paid, I have the following settings:
1. invoice with 2.5% cash discount - 10 days / 30 days net. Invoice, posting and baseline date = 08/12/2010. $13.32. The system
    correctly calculates 2.5% cash discount for this item
2. invoice with 3% cash discount - 10 days/30 days net. Invoice, posting and baseline date = 08/01/2010. $100, no VA. The
    system incoorectly gives this customer a cash discount of 3% for this invoice - see below
Parameters in F110: Posting date = 08/16/2010, next payment run 08/26/2010, Docs. entered up to = 08/16/2010, Customer items due by = 08/26/2010, this one cust. is psecified, payment method = E (direct debit) etc.
==> Display log for invoice # 2, $100.-:
            Due date determination additional log
Document 8130000263 line item 001 via EUR          100.00
Terms of payment: 08/01/2010   10 3.000 %   30 0.000 %    0
Customer receivable is payable on 08/11/2010 with cash discount terms 1
   Include customer items due by 09/05/2010
Item should be paid now
Item is due with 3.000 % cash discount
            Payment method selection additional log
Payment method selection for items due now to the amount of EUR           97.00
Payment method "E" is being checked
Bank details are being checked
     Customer/vendor bank details are being checked
   System reads house banks and checks if they are allowed
Our bank 20030 is being checked
For currency EUR and 000 days 500,000,000.00 are planned
Available amount is enough, 499,999,986.68 EUR still available,           97.00 necessary
   House bank is selected ...
    Our bank details 20030 20030 are used
Bank details of the partner with ctry DE bk no. 12070000 acct 01234567899 are being used
Payment method "E" is permitted
Does anyone have any clue what's going on??
Edited by: WickedViking on Aug 16, 2010 7:24 PM

Cash discount calculated even after the due date in F110

Hi Friends,
Invoice and Credit memo is created with the reference to PO, but when the payment is made to the vendor through F110 the cash discount is calculated on the credit memo even though it has passed the due date.
Let me know what else is remaining that has to be checked and corrected
Regards
Paddy

Check the following configuration: t-code FBZP -> All Company Codes -> double-click on the relevant company code to display the details.
In the "Cash discount and tolerances" section, I'm thinking that you'll find that the "Max.cash discount" check box is checked. This check box tells F110 to always take the discount, even if the terms have expired. If you uncheck the box, then F110 will only take the discount within terms.
Regards,
Shannon

Cash Discount if F110 being considered even after expiry of due date

Hello SAP Consultants,
I have setup a payment term for client which is 1% disc if paid within 10 days of invoice date. On running automatic payment program F110, irrespective of no. of days, the payment program generates discount of 1%. (I am using standard payment method C-cheque)
My doubt is why SAP is applying cash discount in F110 even when the payment is being made after 10 days say after a month.
I have cheched the setting in FBZP in All company Codesfor Maximum Cash Discount. The tick is not there means it is not activated. Still we are getting the above error in F110.
Regards,
Abhishek

Hi Abhishek,
The problem you're experiencing is caused by your payment term configuration, which probably has 1% 5 days but does not include how to handle cash discount after that date e.g. 0% 6 days. You can test this quite simply (presuming you have access to a test system) by changing the payment term configuration to include 0% for 6 days then post a vendor invoice with the same details provided in your message and process for payment. Alternatively find an existing vendor invoice with payment term you mention and double click into the vendor line item and add 6 days to the Cash discount days 2 field but leave the Cash discount percentage 2 field blank (see example below) then process for payment. I have also pasted the text from OSS note 48384 below which refers to this issue.
Vendor line item - Additional details tab
Payt terms XXXX Days/percent 5 1.000 % 6 %
Expected results (based on details mentioned in your message):
Payment run posting date: 15/03/10 - Posting date of next payment run: 16/03/10
cash discount still valid and should be deducted
Payment run posting date: 16/03/10 - Posting date of next payment run: 17/03/10
cash discount not valid and should not be deducted
SAP Note 48384 - Cash discount is taken although item overdue
Note Language: English Version: 4 Validity: Valid Since 20.02.1997
Summary
Symptom
Vendor invoice is paid with cash discount by the payment program
although the cash discount period has expired, the "Always max. cash
discount" flag in configuration Payment program is not set and no cash
discount agreement is noted in the document either.
Additional key words
F110, payment run
Cause and prerequisites
If in the terms of payment only, for example, 10 days 3 % and nothing else has been defined (further fields are not filled at all), the payment program has no instructions as to how the payment is to be made if the first cash discount period has expired. Nevertheless, the payment is made with cash discount terms 1 under these circumstances.
Solution
Choose other terms of payment.
Header Data
Release Status: Released for Customer
Released on: 19.02.1997 23:00:00
Master Language: German
Priority: Correction with medium priority
Category: Consulting
Primary Component FI-AP Accounts Payable
The Note is release-independent

Query Regarding Cash discount In F110

Dear all,
We have a payment terms 0003(14 days 3% cash Discount,20 Days 2% cash discount & within 30 days due net).
I have posted vendor invoice with this payment terms on 15.09.2009 & making payment to the vendor on the same day to avail 3% cash discount through F110 but when we go to edit proposal after scheduling proposal the system through an error Company codes XXXX/XXXX do not appear in proposal 15.09.2009 TEST; correct.
It do not allow us to make payment to vendor until the invoice becomes due.because of this we cannot take cash discount from vendors.
We have checked Max cash discount in All company codes in FBZP.
Regards,
D RANA

Hi Deepak,
Try giving the next run date after the due date say after 35 days or si and keep the other parameters as you are using now. The payment should get included. Normally, SAP will check if the the document is getting over due or not in the next payment run date and includes it in the current only then.
Please revert.
Thanks and Regards,
Anit

Vendor cash discount in F110

Dear gurus, please advise in this issue
I have a vendor with 2%10 specified in the vendor master and also on the invoice- pmt method is check.
I checked to see if 2%10 is defined as 2% discount if paid within 10 days else due net by 30 days.And this seems to be OK.
When I ran F110, the payment program(for check) is not picking up this invoice untill 30 days from baseline date.
and on 30th day the f110 program picked up this invoice, I wonder why the cash discount is not being taken/ considered by the payment program.
Max cash discount is NOT checked in configuration.But I think this need NOT to be checked, if not please suggest.
Please advise what changes needs to be done to get F110 pick up such invoices to take cash discount.
I understand that if "Max cash disc" is checked SAP takes cash discount even after discount period.
Thank you
MSJ

Hi
cash dicount related setting in FBZP but when autometically pick.and other once vendor master data check the setting.
Regards
suresh

Reg: material cash discounts

hello friends,
I understand that cash discounts taken from vendors will do settings in OBXU, OBB8.
for MIGO cash discounts where we do the cash discount configuration, is that in OBYC, if so let me know the transaction we use for that.
i knew that for cash discount G/L account we select the post automatically setting in FS00.
actually user posting MIRO transations, with payment terms as 2% discount for 10 days later that full payment, and baseline date is taken as document date in OBB8.
but after 10 days also system is calculating discount for MIRO transactions.
Please let me know in this regard.
Thanks,
HK

Hi
Calculating discount after the due date is may be due to the no. of grace days mentioned in the Grace days due date field under Specifications for Clearing transactions Tab in OBA3 Customer/Vendor Tolerances. Remove the no. of grace days mentioned from the field and do manual clearing to avoid discount after the due date.
Grace days are Number of days by which the payment deadlines may be exceeded when manual payments are made. In the payment entry facilities, the grace days are added to the payment deadlines. This means that the system will accept cash discount deductions and net payments even after the original deadline. If the days in arrears are displayed during open item processing, the system reduces them by the number of grace days.
(OR)
Calculating discount after the due date is may be due to the no. of tolerance days mentioned in the Tolerance days for payable field under Cash discount and tolerances Tab in OBVU (FBZP-All Company Codes-Maintain Payment Program-APP Configuration). Remove the no. of tolerance days mentioned from the field and do automatic clearing in F110 to avoid discount after the due date.
Tolerance days for payables specifies the number of days by which the cash discount periods and period for the due date for net payment may be exceeded. When determining the due date, the system adds the number of days specified here to the dates. Payment is then sometimes made after the exact date in the terms of payment.
Thanks
Naresh K.

"Max. cash discount" not taken in F-58

We select u201Cmax. cash discountu201D in configuration, FBZP. Payment program will calculate discount without considering base line date.
However, this works only if payment run is done in F110 u2013 calculate discount based on only the payment term field. But if the payment done in transaction F-58, discount is calculated based on the base line date AND payment terms.
"Max. cash discount" works only in F110, but not in F-58. Has anyone experienced a similiar issue?

For manual paymenst i do not see any settings, but you can set the indication 'Cash Discount Terms Used for Displaying Items when Clearing' in Outgoing Payments> Manual Outgoing Payments> 'Define Tolerances (Vendors)' to display the first cash discount % (which is the max discount).
This will display the max discount i F-58

Cash Discount taken incoming Payments

Hi folks,
when we allocation incoming payments to open AR, discounts might be taken from customers.
We use FB05 for this.
Discount GL is automatically chosen (OBXI) and correctly calculated.
However, tax needs to be adjusted as well. This is not automatically done.
What could be the reason for this?
Tax Category field for "Cash discount expenses" is filled with "*".
In case of purchase discounts in payment program F110, it works absolutely fine.
please let me know if you need additional information
Appreciate your help.

Hi Benjamin,
I tried your scenario in a test system and it work well (i.e. VAT line is generated), the only ways it does not work (and rightly so in my opinion) are:
Cash discount account is set up as "no relevant for tax" (tax category is blank) in FS00
The company code is set up with "tax base is net value" in OBY6 but in this case I get an error message at posting if my cash discount account is set up as "tax relevant" in FS00
What is your setting for "cash discount" in OBY6 ?
Regards
Thomas

Always cash discount term 1 for debt memos

Hi Guru,
In the coding for the automatic payment program, if the document is a Customer Invoice, the first condition of the payment term will
always be selected. Therefore discount is always taken even after the discount term is expired. See the following OSS note
31345 F110 - Always cash dsct trm 1 for debt memos
Is there any setting on the system that we can set the program run separately??
Thanks
Linda

Hi,
Please be informed for all customer debit and credit items maximum cash discount is always considered. The reason for this is customer should not be penalized for carrying out the automatic payment after the due date. Thus max cash discount should be granted.
If you want please use manual payment rather than F110. it makes sense to penalize the customer if they pay late, but not for an automated payment.
The customer has no influence over the time of payment. Therefore, one may not be able to hold the customer responsible, if collections are too late for the time period set for the highest cash discount terms. There is no legal or business reason for raising the payment amount because the payment program was run late.
Regards
Ravinagh Boni

Cash discount in APP F110

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