Cash Discount after Sales Tax

Dear Friends
i could understand that we need to assign a GL Account for the Lost Cash discount
(net Procedure) - Transaction Code - OBXV.
i want to know the Exact Path in the SPRO for this T Code - OBXV.
Pl can any body help me out with the IMG Path to assign the GL instead of going through the T code.
Thanks & Regards
Rishikesh

Hi
SPRO - Financial accounting - AR AP - Busi trns - Outgoing pyts - Outgoing pyt global settings - Define accounts for lost cash discount
Thank You,

Similar Messages

Cash Discount after Tax & VAT

Hi , Friends,
My client has a scenario where in some purchase orders , he receives the discount after tax.
when I add the discount (absolute) after tax in the m/08 , the net price changes and the tax is calculated on this new net price which is wrong & not required .
Friends tell me what chnages I need to do so that discount is calculated after Tax & VAt and the ideally what should be the accounting entries in MIGO and MIRO.
if the gross price is Rs 100
tax is Rs 10
and discount is Rs 5.
Thanks in advance

Hi Dgn,
What type of industry sector your client belongs to. But as a standard practise, cash discounts are captured before adopting the Tax or VAT through Invoice.
We will calculate the accounts payable:
Usually below is the scenario for taking the discounts from the vendor in the process of purchaing:
will take your given figures/values:
Eg. (1)
                           Total gross price:      100.00 INR            (as per your client)
                           Discount:                       5.00 INR          (-ve)
                                                                                95.00 INR
then adopt, Tax (10%):                             9.50 INR      (10% on gross ( = 9.50 INR) :   goes to govt. for tax depart.
that means, the total amount:                   85.50 INR      payable to the vendor (A/P)
But, where as in your case /as per client,
(2)
Taking your eg. Total gross price:      100.00 INR            (as per your client)
                           Tax amount: (10%)     10.00 INR            (10% on gross = 10 INR)    : goes to govt. for tax depart.
                                                                                110.00 INR
then taking,       Discount:                         5.00 INR      (-ve)
that means, the total amount:                105.00 INR      payable to the vendor (A/P)
(1): 85.5 INR   < (2) : 105.00 INR
So, in 2nd scenario, your client has to pay more to their vendors & also more tax in the process of purchasing compare to the usually procedure (1). Other wise your client has to pay extra 20.00 INR. Hence option 1 is the rightone.
Pls check with your client again and suggest them further.
Hope you understood.
Regards,
Sapsrin.

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

Cash Discount in pricing Sales Order SKTV

Hi gurus,
I need help to understand condition SKTV (Cash discount) in sales order. Requeriment is a cash discount for customer. Where do I put value to this condition for every customer? There isn't access sequence.
I will reward points to anybody help me with steps to configure OK this condition.
Thank you!!!

Gaurav,
Thanks for the reply.
But it looks like your suggestion is not relevant to my issue.
My requirement is to automatically populate the "discount percent" condition type in pricing tab of PO.
Also discount percent relevant for the payment terms should get derived in that condition type.
I could able to manually add that condition type in pricing tab and have to manually enter the discount %. But I would like to get that automatically.
In SAP R/3, it is happening automatically with SKTO condition type. Discount % available for the payment terms is getting derived automatically for the SKTO condition type.
PLease advise.
Thanks,
SS

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 Base Payment Term

Hi Guru's,
I have a scenario as below based on the 'payment terms', these dicounts are apart from other discount:
If old bills are cleared within 0 days............4%, 0-3 days......2.5%, 3-7 days.......1% discounts are given,
how are these can be configured, can any one help me out urgently please....
Regards,
Sachin.V

You can achive this with the functionality of cash discount.
SKTV - Cash Discount before Tax
SKTO Cash Discount after tax.
You need not maintain any condition records for this. Based on the payment terms applicable in the order, these discounts will be populated in your sales order.
In your pricing procedure, You should have SKTV after Net Value and before Tax calculation. use Requirement 14 and Base value 2. sub total D.
You should have SKTO after Total Value in your pricing procedure. Use Requirement 9 and Base Value 11. Sub total not required.
You can have both the above condition types or any one of them. That depends on your client's requirements.
Hope this helps.
Thanks
Sai

Cash discount in taxinn

Dear Gurus,
I am purchasing a excisable material with following details. Basic= 100Rs, BED,AED,ECS,say 14Rs. Total inclusive of taxes =100+14=114 Rs. Now cash discount 4 Rs. So new total for CST=110. On this new total 4% cst. How to do this as all this calculation happens in TAXINN and there is as such no provision for cash discount (% and value) in between tax calculation as said above.How to do this. Without cash discount I am doing this by creating a tax code and in taxcode I am using various conditions for calculation of excise with CST & That is working fine without cash discount . But I dont know how to include cash discount after excise and before CST/VAT.IS there any condition for cash discount in taxinn?
How to do this? Please guide.
Thanx in advance.
Regards
Nilesh

You can try this workaround....
Create a condition type and assign it to purchasing schema and to this condition type use the subtotal for eg D, E etc in which you pass this value to some variable and in Taxinn procedure you can write routine in CalType which it will copy value from this variable and assign to this condition type.
With this you can enter the percentage in purchasing schema and this will flow in taxxin procedure.

Need info on Cash discounts

Hello,
I need some info on cash discounts.
I understand that cash discounts are applicable to the customer after he makes the payment. We issue credit memo.
But i dont understand the link b/n cash dicount conditon type (say SKTO/SKTV and payment terms )
How the cash discounts are linked to payment terms?
Whats the setting done for this?
Could some one answer this?
Regards,
Krishna

Cash discount means the rate of cash discount.
Where do you find the details of how much cash discount to be given to the customer ?
It is stored in the "Payment Term".
Any organisation has got its Payment Term or Terms of Payment for the business.
For example,suppose to-day you have purchased some goods from me and I have a payment term in my organisation like below,
If you are paying me within 7 days,then you are eligible for 5% cash discount.
If you are paying me within 15 days, then you will get 2% cash discount.After this no cash discount and 30 days is the maximum credit days and within 30 days if you are not paying me , then I will charge suppose 20% interest on the amount from the 31st day onwards.
System gets this information regarding the Cash discount, from this Payment Term.
For Cash discount , there is a special condition type "SKTO". This is a statistical condition type. Condition type SKTO retrieves the cash discount rate to be given, from the Payment Term.
Condition type SKTO does not have any access sequence and its finds out the cash discount rate from the payment in the Table "T052" (in this table all cash discounts are stored).
To find this cash discount rate SKTO uses its condition category "E".

Discount After Excise & Sales Tax

I have one scenario
Vendor will give Discount, For which excise & sales tax will not be calculated.
To fullfill this scenario where i have to put discount condition in pricing

Hi Mr. Satya,
For this scenario give the define the new discount condition type and assign at the end of the MM pricing procedure. In the discount condition give the subtotal as 6. This will solves your problem.
Regards
Satya

Tax on cash discount

Hello All,
Here is the situation:
PO for 10 lb @ $10/lb
Tax 10%
Cash Discount - $ 10 if paid within 10 days.
GR for 10 lb
Invoice for 10 lb @ $10 = 100 (invoice posted as gross invoice)
Tax - $ 10
Total $ 110
At Payment
Vendor bank gets $ 99 ($100-$10=$90 and tax 10% on 90) Tax is calculated after cash discount.
Client wants to pay tax on $100. The total amount they wanted to pay vendor including tax is $100. ($90 + tax 10% on $100) Tax is calculated before cash discount.
How can we achieve this?
We are using Vertex to calculate tax.

you are define tax code in discount...
pls select discount related tax code.

Withholding Tax Report S_P00_07000134 not excluding vendor cash discount

Hi Gurus
I am running withholding tax report S_P00_07000134. The report output has gross endor payment. It is not excluding the cash discount amount in the output.
Can someone please help me as to how can we change the report S_P00_07000134 so that it displays amounts after excluding vendor cash discount?
I appreciate your help.
Thanks,
Shalu

HI
please refer the below notes
1304883 1273403
Reg
Madhu M

Discount after Tax

Hi all,
I am working for a client who is not regisrede under excise. Hence the credit on import duties ( CVD etc.) can not be availed. But the same is availed ( paased on to ) by subcontractor to whom this material is sent.
On the finished goods sent by the vendor he is paying excise duty. In his books he has credit for CVD passed on by client, so the final cost he bears is only the difference between these two. To consider this in the pricing of the finished product we n eed to add a condition which is of the nature discount, but will come into picture after the tax conditions.
How this condition can be configured?
Regards
Prashant

Dear Prashant,
As per your query, Imports duty i.e. CVD can't be availed and Subcontractor can avail the benefits.
In what and which way sub-contracor can avail this benefits. Bill of entry on which name....Company Name or Sub-Contractor name?
What ever solutions come out from this Forum, SAP should support as well Company Auditors (internal and external) should satisfy if we give work around solutions.
With out knowing above details, we can't give any solutions.
Bye,
Muralidhara

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

Discount after Tax Calculation!!

Dear Friends,
i want to calculate my discount after tax calculation.
Gross Price : 1000
Packing & Forwarding : 100
Total : 1100 (amount on this VAT calculated) 1100 * 4% = 44
Freight : 100
Total value of PO = (Gross Price + Packing & Forward + Tax + Freight)
=(100010044+100) = 1244
Up to this its calculating correctly, after this i want to calculate discount 10 % on my Gross value (1000) ie,100
Now total value of PO after TAX = (1244-100) = 1144
This 1144 values are correctly calculating, but the behaviour of the VAT amount changing (Now this 100 rs is subtracting on my Total:1100 tha Vat 4% is recalculating to 40 Rs)
from satish...

Hi
Try this
After calculating Total value of PO ,(1244)
add one condition absulute discount like PB00
give it sub toatal 6
give this amount 100 rs in po manually
next step final price (1244-100) = 1144
Vipin

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

Cash Discount after Sales Tax

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