Installment based payment terms

SAP Gurus,
Can you please tell me how to create installment based payment terms in sap.
With any situable scenario......
Regards.

Hi,
SAP provided standard installment payment terms:0009.
Eg: 30% for 15 days, 40% f0r 30 dyas, 30% for 45 days installments
Create one payment term: Z001 (here select installment in config)
create payment term for 15 days: Z015
Create payment term for 30 days: Z030
Create payment term for 45 days: Z045
Now in this node: Define Terms of Payment for Installment Payments (obb9)
Z009 instalment 1 30% Z015
Like that you assign all three payment terms to Z001
Regards,
Azeem

Similar Messages

Flexible payment term

Hi everybody
I would like to ask if it's possible to create new payment term totally flexible: the customer wants to have different amount (not linked to percentages) to fix the payment both with vendors and customers.
And this changes every time a new order is made...
Is there any possibility to create a payment term they can use inserting every time the different amounts with due date??
Thanks in advace for the help
Regards
Chiara

Hi
It is not possible to have the payment terms based on the fixed amoun, it can only be based on % when you configure Instalment based payment terms.
Even when you configure the instalment payment terms you can't have the flexibility to change it as & when required.
Totally flexible paymnet terms is not possible.
Regards
R.Karthigayan

Payment Term - Installment

Hi Guru,
I config OBB8 & OBB9 for the installment.
Payment Term 0009
1st. 40 % -- GR
2nd. 30% -- Inspection
3rd 10%. -- Completion of testing
In PO, we purchase 1 Machine with USD1,000. (Payment Term 0009)
When doing MIRO for the GR, USD400, the system breaks down USD400 in 40%, 30% & 10% which is not what I am expecting. Wonder anyone comes across this issue before? Thanks in advance.
CT

I think you should enter MIRO for USD 1000, not USD 400. Put a default payment block in OBB8 for 2nd and 3rd installment. By the way, where is the 4th installment (for the remaining 20%)?
When you do all the above, MIRO's follow-on accounting document automatically splits the vendor liability line item into four line items, where the 1st installment will be with due date as per the term you have in your 1st installment payment term (in OBB8) and the rest would be blocked for payment. As and when further milestones (inspection, testing, etc.) are complete, you need to manually remove payment block on the corresponding vendor liability line items.
Also consider Partial Invoicing Plan under SPRO -> MM -> Purchasing -> PO -> Invoicing Plan (I can't elaborate much on this, as I never worked on this).
Good luck!

Payment term based on Period

We are creating schedule agreement for vendor with Rate and Term of Payment.
I have got requirement from the client that they want to change the Term of Payment at vendor master but the system should function in below manner.
Say we have created the Agreement on 01.08.2011 and the same time the Terms of Payment at Vendor master was 0001, i have partial receipt agaist the said order. further user has modified the payment term to 0002 at vendor master as on 16.08.2011 and received the balance material.
Currently while MIRO system is considering the payment term 0001 for both receipt as the same was at the time of creation of order but i want that the system should pick 0001 for 1st receipt and 0002 for second receipt.
Please advice

hi,
1. There is nothing period based Payment term.You can go to transaction code "OBB8". you will find the details of configuration regarding Payment term.
2. Payment terms maintained at Vendor master and while doing transaction ( SA/P.O ) system will propose the Payment term, on creation of P.O/S.A, system automatically don't change the payment term.
On confirmation from vendor you need to change it in P.O and then proceed for creating MIRO.
If version Management is active upon changing Payment term in P.O , may need to complete the version also.
or else change directly at MIRO under Payment tab.
Thanks & Regards
Sudhansu

Installments In Payment Term

Hi all,
How to use installment in payment terms set up for vendor.
We have a case of spilt payments to our import consignments.
Can this help us in automating our outgoing payments in terms of alerts or something like that ?
Can we capture this while booking A/P Invoice ?
Thanking you
Malhaar

Hi Malhaar,
To use installment, first you have to define the number of installments and date range for each installment. Go to Administration - Setup - Business Partners - Payment Terms.
Then, when you create A/P Invoice, go to accounting tab, and choose the payment terms. System will automatically set the installment date and amount based on your previous setting, however you could still override it.
As for the automatic payment and so on, no such thing as that. You still have to read the A/P aging report, and if you want to, you could still use the payment wizard. Basically, what the system do only separate the value and due date for each installment for an A/P invoice in the A/P aging report. And the payment wizard only calculate the outstanding value for each installment.
Best Regards,
Hendry Wijaya

Billin Problem related with payment terms

Hi all SAP experts,
The client is selling inventorized items (trading goods) as well as services. There are orders in which the client will enter the trading goods as well as a service item called as u201Cinstallation charges.u201D For the trading goods line item category say u201CTANu201D the billing relevance will be u201CA u2013 delivery related billing documentu201D as the invoice will be created after the delivery to close the sales cycle. For the rental contract item category & maintenance item category, the billing relevance will be u201CI u2013 order relevant billing-billing planu201D.
Say a sales order is created & in that along with the trading item (ATM machine), there is a service line item as well for installation charges. So there will be two different item categories in the same sales order.
The payment terms will be fetched from the customer master or may be changed in the sales order as per the negotiations with the customer.
The payment terms will be as follows & will be entered in the sales order:
1. 50% at the time of order confirmation (sales order).
2. 40% after the delivery.
3. 10% after the installation, commissioning & testing.
Requirements:
1. The client wants to generate a separate invoice for all the 3 part payments.
2. All the three invoices will have different payment terms. (for example, the sales order is created for 2000 USD. First invoice of 50% i.e. 1000 USD to be created & sent to the customer. Again the customer is supposed to send the payment within 7 days from the date of invoice. So there will be a separate payment term for the part payment to be received.)
3. The customer wants to have a report which will display for a sales order u2013 the amount received from the customer & the amount to be received from the customer.
Doubts:
1. In transaction code OBB8, we define the payment term & there is a tick for installment. If we tick this then we can create installments against this payment term.
2. In transaction code OBB9, we will see those payment terms only which have the installment indicator ticked. Again here we will specify the percentage of the installment & the payment term for the same. The installments are basically the same percentages to be received every period. Can this be used? If yes then does the system generate a separate invoice for the installment?
3. If I use the billing relevance u201CIu201D for trading item as well, then what about the delivery & invoice?
Please guide me on this issue.
With best regards,
Niyaz.

Hi Jonathan,
Thanks for your reply. I had some doubts on the solution. Actually to be more precise let me explain you once again:
In the sales order i have the following line items:
1. ATM machine - 1 qty. This will be a stock item & the item category will be TAN which has billing relevance as "A" - delivery related billing.
2. ATM installation - 1 qty. This will be a service item so non-stock item & the item category will be TAX which has billing relevance as "A" - delivery related billing.
3. Cables - 500 Mts. This will be a stock item & the category will be TAN which has billing relevance as "A" - delivery related billing.
4. Cables Installation - 1 qty. This will be a service item so non-stock item & the item category will be TAX which has billing relevance as "A" - delivery related billing.
Like this there can be many other items as well. The installation items will be different as the client wants it to be.
Now suppose the total order value is 1000 USD. Now the client wants to create 3 different invoices. The payment scenario will be
1. 50% after order confirmation. Once the sales order is confirmed, then an invoice should be generated from the system with a value of 500 USD. For this particular invoice the payment term will be "within net 7 days".
2. 40% after the delivery has been done. An invoice to be generated from the system with a value of 400 USD. For this particular invoice the payment term will be "within net 15 days".
3. 10% after installation. commissioning & testing. An invoice to be generated from the system with a value of 100 USD. For this particular invoice the payment term will be "within net 7 days".
How should i configure the system in order to map the above requirement. Like i should be able to generate 3 different invoices from the system.
Also i want to know at any stage for a particular sales order what id the amount received from the customer & the pending amount.
Overall the sales cycle should be complete.......the document flow should show the
order: completed
delivery: completed
material document: completed
invoice: completed
accounting document: not cleared.
I have one more doubt, if for a stock item i create order related billing (i use billing relevance as "C"), then what will be the overall impact. Like i create the sales order, then delivery with PGI......will it be different from my normal delivery related billing cycle...?
With best regards,
Niyaz.

Diplay only z type payment terms

Hi,
I have a requirement saying that system should display only client based payment terms not all payment terms ( standard + client payment terms )
Any possibility of doing this, Your help will be highly appreciated..
Thanks
Sankar

Dear sankar
For heaven sake, dont delete the standards. However, in order to achieve the requirement, you can try with the following user exits.
For sale order
- User exits in the program MV45AFZZ - USEREXIT_MOVE_FIELD_TO_VBAK or
- User-Exits in program MV45AFZB - USEREXIT_CHECK_VBAK
For Billing
- USEREXIT_FILL_VBRK_VBRP (Module pool SAPLV60A, program RV60AFZC)
thanks
G. Lakshmipathi

Retention amount/ payment term

Hi Sap Gurus ,
I have a request from the client to configure , retention amount from vendors
Can any one please xplain the configuration steps for the business process mentioned below .
Cost of the COntract 100000 thousand , to be executed in four months
At the end of 1st month invoice received for payment 25% of the contract amount
At the end of 2nd month invoice received for payment 25% of the contract amount
At the end of 3rd month invoice received for payment 25% of the contract amount
At the end of the contract invoice received for the final payment of 25% amount
THe business requirement is ,THe client wants to retain 10 % of every invoice(2500 per invoice ) and make the payment after six months ,starting from the end of the contract, that is at the end of 10th month from the contract start period .
Request you all to please provide me a solution on the above
Regards
Vik

Hi Vik,
You need to configure 3 terms of payment for this purpose.
Tcode: OBB8
Z001   Main terms of payment which you will enter at the time of posting.
In this terms of payment, you should flag the "Installment Payment" Checkbox.
Z002   Immediate or X number of days from the posting date or document date as the case may be in your situation for 90% of the amount.
Z003   After six months from the end date of the contract for 10% amount.
Now Goto TCode: OBB9 and give new entries as follows:
Payment Terms    Installment   Percentage   Payment term
               Z001                   1                90                Z002
               Z001                   2                10                Z003
In case you dont want to give it in the number of days, you can also specify it in the form of fixed date+additional months in the OBB8 while configuring the payment terms..
Hope this answer helps you. Please assign points if found useful..
Regards,
Sreekanth....

Installment Payment Terms value break up

Hello All,
As per Satndard configuration for installment payment terms, we can do the total value breakup into installment payment terms percentage wise(%).
My requirement is in case I have 3 installment payment terms(Say SD01, SD02 & SD03) wrt one master payment term(Say SD04), During invoice posting the amount should be fixed for first two payment terms(SD01 & SD02) & differential amount should be posted wrt Third Payment term(SD03). Can I do this through some standard Configuration / Enhancement / Exit.
If not possible is there any other way through which I can generate multiple FI docs for single invoice based on fixed values for customer balances.
Thanks & Regards.
Amit

Hi Amit
I believe your requirement can be solved by using Billing Plan Types.
Regards
Praveen...

AR Invoice with Installment Payment Terms

Hi to All,
We have an invoice where the payment terms are based on installment. The installment is for 18 months. Automatic cash receipts have been applied correctly for Installment 1 and Installment.
Our situation is this where we want to apply an On Account receipt to installment 3. When we query for the installment 3 invoice we are getting the following error message:
"FRM-41830: List of Values contains no entries"
Basically the the invoice is not being queried. We checked the invoice, it is complete but the installments 3-18 are open. What we like to know if we can preform an on account receipt to an installment invoice...if so what setup do we need to look for.
Thanks in advance for any help.

Hi Bharat,
Thanks for your reply. We checked the invoice payment schedule in the tables are 4th to 18th are all open. We have also verified this thru the forms and same appears.
So when we go to receipts and attempt to apply on accounts funds to the invoice. We cant query for the invoice. The following oracle forms message appears: "FRM-41830: List of Values contains no entries"

Setting baseline date based on a specific payment term

Hello everybody,
I have a requirement where i have to change the baseline date in MIRO based on a specific payment term. For ex: out of 3 payment terms A, B and C which all take the same base line date set in MIRO, i want to change the base line date for say condition B only.
I can't find the 3 different payment terms in any exit or BADI. I just get the value in ZTERM as say 'A1' which is the main installment term.
Could anybody tell me how I am supposed to do this?
Regards,
Ritwik Rajkumar

Dmytro has made some excellent suggestions. If it were me, I would rebuild the table into partitions based on the new column EXPIRATION_DATE assuming that the vast majority of the records are to be "expired".
However, I would first set a local variable from sysdate rather than use it in the SQL so that you don't have any context switching to query sysdate for each record AND preserve the same timestamp for all records updated:
declare
V_TIMESTAMP date := sysdate;
begin
update MY_BIG_TABLE
set EXPIRATION_DATE = V_TIMESTAMP
where nvl(EXPIRATION_DATE,V_TIMESTAMP) >= V_TIMESTAMP;
end;

Control amount value based on payment terms in obb9 and me21n

Dear Sapgurus,
In OBB8 Create Payment Terms.
Create 4 Payment terms PT , PT1, PT2, PT3.
For the 1st one PT you select Installment Payment CheckBox.
For PT1, PT2 & PT3 give the no of days as per your requirement.
Go to OBB9 and assigned.
PT -- PT1 -- 20% (Document Date)
PT -- PT2 -- 50% (Posting date)
PT -- PT3 -- 30% (Posting date) in me21n i assign pt payment terms based on this one i want control amount in f-48 like first accroiss 20% is not allowed 1000 rs total value 200 allowed in f-48 how do i make logic, if i assigned in me21n payment terms i want ot check this payment terms in assigned obb9 if i take first payment terms if document date is their i want to take advance payment if payment date is their its normal payment. Whther it is correct or not & If i given any payment terms in me21n i want check background how many payment terms is assigned in this one if payment terms is document date i want to check in f-48 and if posting date in payment terms i want to check in f-53 control how do i prepare logic please give me suggessions.
Regards
Umi

Hi Sridhar,
it would be helpful if you could share with us as how you did?.
Regards,
Siva

Payment terms- installment payments

hello,
how can i exaclty use installment payment in payments terms, it gives me the below msg.
Breakdown into installment payments not possible for item 001
I am trying test retainge for an invoice , so it should brekup the line item depending on the criteria of the installment.
please let me know,

Hello
In case of Instalment payment terms plse follow the procedure mentioned below.
1.Define the payment term by activiting the instalemnt indicator without specifing any discounts rates etc.
2.Then go to the Instalment step and fill the columns in the first column as your payment term define above based on your no of instalments
for example u have 4 instalments give the payment term defined above four times and
in the second column your instlment number like 1st, 2nd,3rd,4th etc.
in the third column percentage in that instment let say 40%,20%,20%,20%.
In the fourth column you assign the normal payment term.
Plse note that you can assign separate payment term for each instalment and can get discount accordingly by specifyng the discount rates.
try this it work.if not plse let me know.Assign points if it is useful.
with regds
RAJA

Instalment payment terms and Due date

Hello
Can i have some comments on how the due date will be calculated in case of instalment payment terms.what is the configuration needed.Can we get the discount for each instalment if we pay in advance i.e before the due date.
with regds
RAJA

Installment payment terms is basically one payment term linked to other paymnet term(s).
If you split it to 3 lines, each of the 3 lines will get the payment term assigned for that line.
E.g. you will configure as follows: (obb9)
Inst Pmt Term Inst     %       Payment term
0001                  1     20              AAAA
0001                  2     30              BBBB
0001                  3     50              CCCC
If you post an invoice (of say 1000) with the pmt term 1, it will split to 3 lines
Line         Amt            Pmt term
1             200                AAAA
2             300                BBBB
3             500                CCCC
All the terms created for AAAA BBBB CCCC will apply to these lines.
Praveen.

Credit Management Process based on Terms of Payment.

Hi All,
My Client wants to use SAP Credit Managment Process. The SAP is currently being used but without Credit Management. As per my initial discussion I have enclosed the requirments below. Your Kind Help will be highly appreciated.
1.     The Process has to be implemented in a 2 Step Process.
2.     The Initial Requirement is based on Terms of Payment. If the Number of Days is Overdue for the Invoice for a particular Customer, the system should issue a warning message (in the Form of Mail or any other way) which can be shown as evidence to the Customer for collection of Payment so that further Sales Transactions can take place.
(Is there the standard Process in Credit Management based on Terms of Payment)
3.     In the next step Value Base Credit Check has to be implemented. The Value will be set for a particular Customer in Credit Master. When the Sales Order is raised and if the Credit Limit is exceeded the System should issue the warning message. Based on the Warning Message Issued an email should triggered to the particular person in Finance that the Credit Limit for a particular person has been exceeded and Credit Limit needs to be increased.
Thanks & Regards,
Sam.

Dear Mr F Farooq,
1. The Process has to be implemented in a 2 Step Process.
Do the following configurations for credit management :
Refer the following link.
http://wiki.sdn.sap.com/wiki/display/ERPLO/CreditManagementConfigaration
2. The Initial Requirement is based on Terms of Payment. If the Number of Days is Overdue for the Invoice for a particular Customer, the system should issue a warning message (in the Form of Mail or any other way) which can be shown as evidence to the Customer for collection of Payment so that further Sales Transactions can take place.
(Is there the standard Process in Credit Management based on Terms of Payment)
Now for this requirement, since different billing documents for the same customer can have different payment terms (whcih means different billing will be due on different date) , please make the following changes in OVA8
Check for 'oldest open item'
Now follow my reply in the below thread.
Sales order to be blocked based on customer payment terms and credit limit
You can use WORKFLOW to trigger mail when such a message is triggered in the sales order , due to credit check.
Ask your ABAP-er for details on workflow.
3. In the next step Value Base Credit Check has to be implemented. The Value will be set for a particular Customer in Credit Master. When the Sales Order is raised and if the Credit Limit is exceeded the System should issue the warning message. Based on the Warning Message Issued an email should triggered to the particular person in Finance that the Credit Limit for a particular person has been exceeded and Credit Limit needs to be increased.
Just configure according to the thread given for 1st POINT.
CHECK FOR DYNAMIC and set reaction as 'C' and check STATUS /BLOCK.
Maintain the credit limit in the FD32.
Now when the sales order value exceeds the credit limit , a message will be triggered.
Use the concept of WORKFLOW to create mail based on this message .
When the user gets mail, he can maintain the new credit limit in FD32 and release the document for delivery/billing in VKM3.
Revert back if there is any issues.
Thanks & Regards,
Hegal K Charles
Edited by: Hegal . K . Charles on Aug 7, 2011 1:19 AM

Installment based payment terms

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