Cash Discount may only be granted up to 3%

Hi Guys,
Im new to FI. While posting an invoice in MIRO, we encounter an error "Cash Discount may only be granted up to 3%". Payment term we are using has cash discount of 5%. I want to take out the limit of the cash discount, how will I do it? What transaction codes to be used? Thanks.

this is held in tolerances
This is in SPRO "Define Tolerances Vendors"
You have groups, and the tolerance group is assigned to the Vendor

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"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 Clearing

Hi to all,
Can somebody tell me when the Cash Discount Clearing account determination (in purchasing tab) is called in SAP. I have tried many scenarios and there is none calling this account.
Can somebody help me
Thanks

Hi,
The Cash Discount Clearing Account is only used when the 'Net Procedure'
option is selected in the Accounting tab of the 'AP Invoice' function.
The 'Net Procedure' enables recording in advance of any future discount
available from purchases. In this approach, the debiting account for the
purchase is automatically reduced by the amount of the future discount.
For example, if a 5 % discount is given for a $100 Invoice, the journal
entry to record the AP Invoice will be as follows:
Dr. Inventory - $95
Dr. Cash Discount Clearing - $5
Cr. BP Supplier - $100
If the 'Net Procedure' option is not selected, the cash discount will
only be recorded upon payment of the AP Invoice. Hence, the journal
entry for the AP Invoice will be as follows:
Dr. Inventory - $100
Cr. BP Supplier - $100
Regards
Vikas
SAP Business One Forums Team

Cash Discount Clearing account

Hi all!
When i set up G/L determination, i don't know Cash Discount Clearing account will appear in what tracsaction. Can you show me any transaction relate with this account.
Thank you!

Hi Tien，
The Cash Discount Clearing Account is only used when the 'Net Procedure'
option is selected in the Accounting tab of the 'AP Invoice' function.
The 'Net Procedure' enables recording in advance of any future discount
available from purchases. In this approach, the debiting account for the
purchase is automatically reduced by the amount of the future discount.
For example, if a 5 % discount is given for a $100 Invoice, the journal
entry to record the AP Invoice will be as follows:
Dr. Inventory - $95
Dr. Cash Discount Clearing - $5
Cr. BP Supplier - $100
If the 'Net Procedure' option is not selected, the cash discount will
only be recorded upon payment of the AP Invoice. Hence, the journal
entry for the AP Invoice will be as follows:
Dr. Inventory - $100
Cr. BP Supplier - $100
Hope it could be helpful.
regards,
Eleven

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 in a purchase order

Hi,
I have a problem with Cash Discount in a purchase order .
When I create a purchase order in ME21N , and I need to put a cash discount in the condition of the header of the purchase order or in item detail, the line cash discount appears automatically when I create a new purchase order with the same material.
Anybody could tell me why the Cash Discount appears automatically?
Thanks a lot
Kari

Hi,
There is a diference between cash discount and discount. Cash disocunt will never come in PO. It comes only during inoice.
The discount in PO is based on quantity. In your case it may ot be cash discount but a discount. It may come automatically because of one of the below reason.
1. If you create a PO wih reference to the PO, which is having discount.
2. If you maintain in Inforecord.
Regards,
Prabu

Cash Discount has become unrestricted

Dear Experts,
I have configured cash discount through payments term route. I have also maintained the SKTO condition in SD in pricing procedure. The issue is that while clearing (F-32) the system is accepting whatever discount we are entering. It is even accepting cash discount values greater than the required amount. We want the system to calculate the correct discount only and not accept any other value.
Please help with your valuable suggestions. Please explain in as much detail as possible.
Warm Regards,
Mukesh

Hello,
Go through the below discussion this may help you.
Discount received
Thanks

Issue for Cash Discount

Dear All
I have an issue for Customer Cash Discount. Suppose a customer sales order has been generated for Rs 100. Now in our sales order pricing procedure, we have created a discount of 2%, which would generate a net value of 98 on which sales tax is calculated. Now the Business requirement is that, if with in 4 days the payment is not recvd, we have to reverse the discount granted in the pricing procedure along with the pro rata sales tax on it. We are not booking the discount in the sales order as an expense in FI.
In Standard, system proposes a cash discount, while booking the incoming payment. however, here the tax part has to be considered for a discount, which has not been booked.
Pls suggest
Thanks & regards
Sanil K Bhandari

Hi
I have checked that. But in my case, discount is only for information as a part of SD Princing Procedure. It Does not make any accounting entry and is granted by default to every customer, before I do billing. If the customer does not pay in time, system has to pass a debit memo automatically for the discount amount and the pro rata tax calculations on it.
In Standard Payment terms, the system posts an entry to "Cash Discount" expense account in case the payment is recvd in time of four days.
Thanks & regards
Sanil K Bhandari

Apply 100% Cash Discounts on Residual Payments

Hello,
My client has the requirement to apply complete discount amount on partial receipts in F-28. This is because the discounts are calculated only on net amount and the customer will pay the net amount initially and will pay vat amouts quarterly.
Below example explains the situation
In SAP the billing document 9-484 has the following amounts
Net amount: 6350.28
Discount    :    63.50 ( Discount based on net , 1%)
Tax amount :1206.55 ( 19 % based on net)
In the accounting , the postings are
AR reconciliation a/c 7556.83
Revenue account : 6350.28
Tax account : 1206.55
The customer only makes payment for the product amount within the payment terms.
Since the discount is based on the net amount(product amount) he only pays 6286.78
In F-28, I enter 6286.78 and select the invoice which shows total amount as 7556.83 with discount of 63.50.
I apply residual payment and simulate the posting
Only cash discount of 53.12 is applied on the invoice as it tries to split the discount proportionally.
<b>Is it possible to apply the total cash discount available on residual payments ?</b>
Please advise

Hi Ashok,
             The discount is being calculated on the net amount, but the payment is assumed to be gross, hence only a portion of the discount is being applied.
Wiliam,
      Under Spro >Financial Accounting>Accounts Receivable and Accounts Payable>Business Transactions>Incoming Payments>Manual Incoming Payments>Define Tolerances (Customers)
      Check that the flag "Only grant partial cash disc." is not set.
This might solve your problem.
Kind regards

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

Exchange rate gains/loss and cash discounts vs document splitting

Dear all,
I am facing the following problem. My customer wants to do the following:
-Realized and unrealized exchange rate differences regarding accounts receivable has to be booked on the same profit center that the invoices was book on when they were created.
-Realized and unrealized exchange rate differences regarding accounts payable has to be booked on the same profit center that the GR/IR account (offseting entry for accounts payable when receiving material vendor invoice)
-Cash dicounts granted must be booked on the same profit center that the GR/IR-account (when registering the invoice) when doing the payment of vendor invoices in f110.
Could this be received through document splitting? Anyone that knows what settings I have to do?
Best Regards, Åsa

Hi
As for your query...When realized loss/gain in that double click on line item you can update profit center.
Same for cash discount granted.
if you ask for document splitting assign Extended document spliting scenario.
it only work for profit center spliting.
clear
Regards
prakash

Payment Term - Cash Discount

All,
I think that I have an easy question, but just wanted claridifcation.. I need to create a new payment term with a simple cash discount - just 2% if paid in full within 30 days and if not, no cash discount. Also, this is just for purchasing vendors.
Within configuration with the payment terms, is the following correct for what I need to do:
Term 1. 2%   30 Days
Term 2. 0%   30 Days (note, that I would leave the percentage field blank for this second line).
At first I thought that I only needed the first line for it, but after reviewing other posts on this topic I have seen that I would probably need the two terms. However, I am unsure if I need to do anything with the Fixed Date and / or Additional Months field. Or, if what I have listed above should be correct.
If you could provide any assitance, it would be much apperciated.
Thanks!

Okay, thanks!
But just to clarify - the net due date is actually 30 days, and they offer a discount if we pay it within the 30 days - so basically if we pay it on time, there is a 2% discount!
So setting it up it would be:
2% 30Days
       30days
Correct?
Thanks for your quick reply!

Purpose of Cash Discount field in Material Master

what is the purpose of Cash Discount field in Material Master. what does it control. do it link to SKTO anywhere?
please explain

Hi,
Cash discount is applicable for this material or not..
This is for Sales only..
Pricing Procedure (RVAA01) and if you activate SKTV and SKTO Condition types
Cash Discount can calculate before tax or after tax
Condition Type- SKTV(Statistical Condition Type)---If you check requirement is "14" which says Discount before Tax( This will calculate from the Filed Material master "Cash Discount Indicator" ie "SKTOF"
Condition Type-SKTO-(Statistical Condition Type)--
>Requirement "9" Discount After tax - here also it will consider filed "SKTOF" ie "Cash discount indicator in material master.
SAM

F-28 cash discount error

For making payment to the billing document from SD in f-28 t-code, we are getting the cash discount percentage but the cash discount amount is not displying even we specified the payment terms in Sales order creation. Even, if we specify manually the cash discount amount in f-28, its giving an warning message
ERROR : Cash discount-relevant amount is zero; check entry at the bottom left corner of the screen. When I click this warning, I get a pop-up screen with the same message and message no. F5073.
We have maintained the field status as given below:
Also check that in transaction OB41, Payment term is maintained as optional field in field status group Payment Transactions for posting key 31.
Also go to FS00 for the reconciliation account assigned to your vendor, the go to tab 'Create/bank/interest" and double click on the field status gorup.Check that in group Payment Transactions, the field Payment term is marked as optional field.)
And SD pricing for the material is also defined.
condition type : SKTO for the cash discount.
After doing all the abouve configurations, we are still getting the error,.
From FI side, we have no issues as it is giving the cash discount percentage and cash discount amount in f-28 correctly. and we are able to process the cash discount document, which gets generated automatically.
Only the problem From SD flow.
Regards,
Ketan

hi
check out this SAP Note
185223 Posting of cash discount paid without tax code

Cash discount calculation at invoice level not at sales order level

Dear Friends
while i am executing the sales cycle creten Cash discount conditions are calculating in the Invoice directly not in sales order.
can you please let us know your views oin what basis iot calculating directly in the invoice, since payment terms is there in both sales order and invoice level. but discount is only appearing at invoice level, not in the sale order level..
where these setting incurred in this process. i have verifies all the routies, there is no such kind of logic to calculate in a particular palce.
treat this one as high priority and let me know.
Thanks
Raju.

Hi
while i am executing the sales cycle creten Cash discount conditions are calculating in the Invoice directly not in sales order.
can you please let us know your views oin what basis iot calculating directly in the invoice, since payment terms is there in both sales order and invoice level. but discount is only appearing at invoice level, not in the sale order level..
Please check your Pricing Procedure, whetehr against your Cash Discount Condition Type, Requirement 24 or 23 is maintained? If it is maintained remove these requirements and save. Then try to run the transaction.
Regards,
Amitesh Anand

Cash Discount may only be granted up to 3%

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