Cash discount clearing (Net method)

All
I require clarification, There are two scenarios. One to calculate discount while making payment and another one is while booking invoice.
I am clear regarding "To calculate discount while making payment"
I am not clear on "To calculate discount whlie invoice booking". I am aware of the FBKP config settings
I had gone thru the SDN links and not clear of "The Cash Discount Clearing Account is only used when the 'Net Procedure'
option is selected in the Accounting tab of the 'AP Invoice' function."
What is that "AP invoice function". Where can we find ?
Regards
Raj

Hi Raj,
We have configured our ECC6.0 system to the Gross method, which means that at the time of the payment program, it takes the discount (if applicable). My understanding of the Net method is that it calculates the discount at the time of the invoice posting HOWEVER we chose not to use that method, because the Amount Split tab is not available in that method and we need to split our invoices for tax reasons (where part of the invoice is tax reportable/deductable but not all).
To configure GROSS vs NET discount:
1. set up an expense GL account for Gross. Set up a balance sheet account for Net
2. Goto FBKP, Automatic Postings, Cash discount and payment differences, Cash discount clearing (SKV) and enter the expense GL Account. (the NET method needs a balance sheet account GL here)
3. Then go to SPRO
Under Financial Accounting (New)\AR&AP\Business Transactions\Outgoing Payments\Outgoing Payments Global Settings\Define Accounts for Cash Discount Taken (OBXU)
For Gross setting, enter the same expense GL Account. Net setting should have the balance sheet account.
4. Under Financial Accounting (New)\AR&AP\Business Transactions\Outgoing Payments\Outgoing Payments Global Settings\Define Accounts for Lost Cash Discount (OBXV)
For Gross settting, this should be blank. Net setting should have the balance sheet account here also.
5. Under Financial Accounting (New)\Financial Accounting Global Settings\Document\Document Type\Define Document Types (OBA7) for Entry View Click on all your Invoice Document Types
There is a box labeled Control data and then there is a checkbox labeled Net document type.
For Gross Config, that checkbox should be blank (unchecked).
We have found that using the GROSS setting requires us to create our own discounts lost/earned report based upon the payment program proposal logs.
Does that help?
Cindy

Similar Messages

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

Cash Discount on net amount.

Dear All,
Is it possible to created the following payment term:
Payment within 60 days net amount, or payment within 8 days with 2% discount over the net amount excluding VAT. For example,
1) Invoice
Meterial Account - Dr-100
VAT Account - Cr-10
To Vendor----- Cr 110
The above case im using payment method Z001with in 8days 2% and after no discount. I want calculate discount on only net amount 100 (i.e on Meterial 100).
Kindly advise how reach.
Regards

Hello Raju,
First of all your entry didn't matched check the entry you had given
Meterial Account - Dr-100
VAT Account - Cr-10
To Vendor----- Cr 110
I think VAT should be debit.

No line item for Cash discount in customer invoice

Hi Experts,
Can anyone please suggest with configuration details for customising the customer invoice, to display invoice with cash discount line item. Currently i have assigned the customer master data with payment terms to include cash discount of 10% on for invoice with credit period of 20 days.
Thanks in advance
satish

I think first thing you should be looking for is are you following net discount method or gross discount method . As that will define whether the posting of discount will be at invoice or when you post the payment document against that invoice. + you have to configure cash discount accounts before you can post in cash discount.
Net: Cash discount clearing account and Cash discount loss/gain account (At the time of Invoice posting )
Gross: Cash discount given and Cash discount recieved account (At the time of payment)

Discount configuration net procedure

Hi,
   I have understood that
   For GROSS procedure cash discount calculation, we use only two general ledgers:
   1.Cash discount recieved
   2.Cash discount paid
   For NET procedure cash discount calculation, we use only two general ledgers:
   1.Cash discount clearing account
   2.Lost cash discount account.
My Question is, do we have an option of assigning all the four general ledgers:
   1.Cash discount clearing account
   2.Lost cash discount account
   3.Cash discount recived account
   4.Cash discount paid account.
while calculating cash discount following NET procedure. If we have an option of doing so, pls let me know.
   Thanks & Regards
    Manoj.M

first of all, you are talking about general ledger accounts, not general ledgers.
according to me you need:
incoming invoices cash discount clearing: OBXA
outgoing payments cash discount received: OBXU
outgoing payments cash discount lost: OBXV
incoming payments cash discounts granted: OBXI

Cash Discount at the time of Goods Receipt.

Dear Gurus,
Our requirement is to post goods receipt at cash discounted value but at the same time I wants to calculate taxes on Gross. Consider following case.
Base value 100, Quantity 1.Total value =100 RS. 8.24% Excise on 100= 8.24 . Add to Gross=100+8.24=108.24. Now 4% VAT on 108.24=4.33. Total PO Value =100 8.244.33=112.57 RS.
100 ( Base material prise)
+8.24 ( Excise)
+4.33 ( 4%Vat on 108.24)
112.57 (Tot PO value)
-2.57
112 ( PO)
Now since 2.57 RS cash discount known at the time of PO, so I have created a Z condition ( cash discount Value type) and assigned it in prising at proper place ( below total PO value) so that when I assign value 2.57 to this Zcondition, my PO gross is getting changed from 100 to 100 minus 2.57=97.43. Now system is calculating 8.24 % excise on 97.43 but I want it on 100 . How to do this.
Thanx in advance.
Regards
Nilesh

Please create a Price determination schema/ Modify existing schema to calculate (subtract) Cash Discount in Nett Price and not on Gross Price.
Assign the CAsh discount Z condition to the schema.
You can use this in either header or item level depending upon your requirement.
This is to be maintained in condition table MEK1

Reversal of VAT at the time of allowing cash discount for incoming payment.

Hi Gurus,
Please guide me for the following scenario.
Invoice posted for comp code from SD. Sale value = 100 Vat = 20 (20%) Customer to Pay =120. Cash discount will be 10% if paid with in 15days.
Invoice on 1st May 2011
Entry At invoice
Customer                  DR                                                              120
To Revenue Acct - 1000100                                                                           100
To VAT payable Acct -2000200                                                                        20
Customer made payment on 10th may 2011.
The expected entry is
Bank A/C 30000100       DR                                                         108
Discount 40000100        DR                                                           10
VAT Payable 2000200   DR ((20/120)*12)                                     2
    To Customer                                                                                120
There is acheck box at comp code global setting level (for tax and cash discount) and another at tax jurisdiction set up level.
Is there any other set up is required apart from above set up for reversal of VAT at the time of incoming payment (as shown above).
please guide me.
Pranab

Please create a Price determination schema/ Modify existing schema to calculate (subtract) Cash Discount in Nett Price and not on Gross Price.
Assign the CAsh discount Z condition to the schema.
You can use this in either header or item level depending upon your requirement.
This is to be maintained in condition table MEK1

FB05 Difference too large for clearing - cash discount

Hello,
We have an issue to clear incoming payments in case the customer takes his cash discount.
This siutation occurs only when the original invoice is an SD one ( billing)
In the clearing window the the cash discount amt field is empty, only the discount % field is populated
We tried to mimik the invoice via FB70 and in that case the payment gets clear and the system post perfectly.
In SD we use Condition type SKV and he calculates the correct cash discount
We use 'Discount Base is net value '( Company global param)
It seems that SD is not populating the Discount amount to FI for some reason
Can anyone help us
Thanks

Hi Jan,
Is the Discount Base field populated in SD? Sales Order or Billing Document?
If not, the problem is that SD consultants must add a standard condition for Discount Base Amount in the Sales Order and that field condition must be always the Net Value of the Sales Order.
I currently don't have access to SAP and I cannot check the exact name of the condition.
Please check what is the value that you get in the field Discount Base Amount in the Sales Order and the Billing Document and if it is 0 let me know and I will look for the condition for you.
In that way you will be able to make cash discounts in FI on billing documents coming from SD.
Thanks,
FEFO

Clearing issue Incoming payment due to Cash discount ( customers)

Hello,
During processing automatic incoming payments the system don't clear the customer open item in case the customer has taken a cash discount.
The clearing should be done automatically in the posting area 2 but now the the user needs to do manual interventions in the FEBAN in order to clear the customer
We checked the payment terms and verified the discount taken by the customer and they are ok
After investigation we guess that the original SD invoice don't send the Discount amount and Discount base amount to FI, because we saw that those fields are empty in the FI document (RV),
Also in Billing the Cash discount base field in empty...
When i tried to create a manual customer invoice those fields are well filled in and the system clears the customer open item perfectly !
Any one an idea how to fix it ?

Hello,
Thanks for your feedback but the issue is not solved.
Is there difference in clearing behaviour in case the open item posting is orginated from a SD invoice ( Billing) because as stated before, when I make a FI sales invoice (FB60) the system perfectly accepts the cash discount and post and clears in postingarea 2
Also when I consult the open item position (FBL5N) the cash discount amount field is empty which is not the case when I post an FB60 invoice
Summarized
We are usiing the automatic bank statement program ( FEBC), during posting the system post perfectly posting area 1 (FEBP) but fails the post postingarea 2 ( the system makes a payment advice) the message the system generates ' Difference to large for clearing F5263'
Many thanks for help

Impact of Gross or net document type in calculating Cash discount

Hi Gurus,
I need to know what is the impact of the Gross document type in caluclating the cash discount while paying to vendors?
what if we check the net docuemnt type in docyment type ?
can you tell me the implications on checking this net or gross document type while posting invoice.
regards
rohini kumar

Hi
there is no mistake in that.
If you are using a Gross Invoice Document Type - RE at the time of MIRO Only the gross amount is taken forward for Payment &
At the time of Payment the discount is applied , so the Net value( Gross - cash Discount) will be Posted as a non operating result, the cash discount ammount is not levied on the Material cost where as it is posted into a sperate account.
But if you have already taken Net Invocice document type - RN at the time of MIRO then this discount will be posted as a material cost.
Thanks & Regards
Kishore

Payment advice help - Cash discount question

I am working on a process to get incomming payments from our banks by EDI and automatically apply and clear the payments against the outstanding invoices that we have. The customer that we are working with has a cash discount field that we need to use in our clearing. I have found in notes that the EDI fields needed to use for this is like in the following example:
<E1IDPU1>
    <E1IDPU5>
        <MOAQUAL>003</MOAQUAL>
        <MOABETR>5.00</MOABETR>
        <CUXWAERZ>USD</CUXWAERZ>
    </E1IDPU5>
</E1IDPU1>
<E1IDLU5>
    <MOAQUAL>003</MOAQUAL>
    <MOABETR>5.00</MOABETR>
    <CUXWAERZ>EUR</CUXWAERZ>
</E1IDLU5>
I would expect this to apply a $5 cash discount to whatever payment is in the other fields and then auto clear the invoice if the payment along with this cash discount equals the amount in the invoice. What is instead happening is that a payment for whatever the net amount I enter is created and it seems that this cash discount row is being ignored. How can I get this cash discount to be applied to the payment??

Any ideas ?

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

Lockbox Issue with payment on exact day as Cash Discount Days 1 Due Date

Dear Gurus
We are running into an issue in as much as when we receive a payment against our Lockbox on the exact day as the Cash Discount Days 1 due date the system posts this as an on account posting as opposed to applying the cash against the open receivable and posting the difference to the Cash Discount Account.
E.g. Invoice 10000 Payment term 34 days 2% Net 35. I created the AR invoice today with invoice date and posting date of Oct 9, 2009 and posted the same. Received payment $ 9800 on Lockbox file today Nov 12 using the BAI2 format Lockbox file and found that the system did not even show the invoice # on the Lockbox reports but it recognized the customer based on the MICR # and posted an on account payment. It gave the error" F5 263 Difference too large for Clearing"
The users have prior complained that this situation arises in F-28 as well where they would have to force the discount instead of the system recognizing the same if cash was being applied on the same date as the Cash discount Days 1 due date.
Any help in this regards will be geratly appreciated and points awarded.
Regards
Satpal Narang

Hi Satpal,
Please check the net due date of the document which you are trying to do the payment. As it is critical information to calculate the cash discount.
I hope this helps.
Regards
Ravinagh Boni

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 clearing (Net method)

Similar Messages

Maybe you are looking for