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
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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.
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cash dicount related setting in FBZP but when autometically pick.and other once vendor master data check the setting.
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Reg: material cash discounts
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I understand that cash discounts taken from vendors will do settings in OBXU, OBB8.
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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.
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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.
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(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.
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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.
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Also check that in transaction OB41, Payment term is maintained as optional field in field status group Payment Transactions for posting key 31.
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And SD pricing for the material is also defined.
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After doing all the abouve configurations, we are still getting the error,.
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Only the problem From SD flow.
Regards,
Ketanhi
check out this SAP Note
185223 Posting of cash discount paid without tax code -
Automatic posting of cash discount - line items in payment document
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I need your help to find out the reason why the system posting to few lines in some times, one line in some times of the cash discount taken on vendor payment i.e in payment document.. where is the configuration settings.
Your help would be higly appreciated.
rgds,Thanks Bharathi for the reply..
Here payment document having the few cash discount lines, one bank line and one vendor line on payment of nearly 100 invoices in one day to one vendor.
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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"
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Cindy -
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 .
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MinhtbHI,
Follow the path
Financial accounting ->Account receivables and payables ->vendor account->business transactions->outgoing invoice/credit memos->maintain terms of payment.
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Pleasa assign points if useful.
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1099 via S_P00_07000134 - Generic Withholding tax rptg less cash discount
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Please review the online documentation for report RFIDYYWT located via help -> application help here you see the following information;
ADDITIONAL COMPANY CODE DETAILS:
If you need to make the tax references or the EDI Identifier of your companies available for lists or files or forms processing, you have to define the parameter types, that you usually use, in withholding tax reporting customizing. ( this may be pre-customized )
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Vendor Cash Discount Master Data Settings
Where is the proper area of the COA that a vendor discount account should be setup and what are its typical settings? Looking for specifics in the following areas:
Cost Element? Y/N
General Operating Expense Section of COA? Y/N
Auto-Posting? Y/N
Cash Relevant Flag? Y/N
Post w/o Tax? Y/N
Tax Category?
Any input would be greatly appreciated, thanks.it will be set up in IMG tcode: OBXU (cash discount taken)
The set up for cash discount account in FS00:
Cost Element? Y/N >>> Yes, normally this is part of above GP in COPA (if you have COPA)
General Operating Expense Section of COA? Y/N > depends on your COA account grouping
Auto-Posting? Y/N > can be auto post or not, depending on the requirement if Finance won't allow any manual adjustment
Cash Relevant Flag? Y/N > No
Post w/o Tax? Y/N > Y in cases that the cash discount should not have tax
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Cash discount & Overpayment,Underpayment
Kindly explain me the procedure,settings and what G/L accounts had to be assigned in obxu,obxl. for cash discount and overpayment and underpayment for customer and vendor and how about the Tolerances for user,customer and vendor what settings have to be done and how they reflect.
Thank u
NarenderA) Cash Discount-
1.Financial Accounting (New) ---> Accounts receivables and Accounts Payables --->Business Tansactions ->Outgoing Payments->Outgoing Payments Global Settings--->Define Accounts for Cash Discount Taken
T-code- OBXU
2.Enter the your chart of accounts . Choose Continue
3.Enter account number
Here you define the account numbers for your cash discount expense accounts. The system posts the cash discount amount to these accounts when clearing open items.
4.Save your entry.
B) OverPayment /Underpayment-
Financial Accounting (New)->Accounts receivables and Accounts Payables->Business Transactions->Outgoing Payments->Outgoing Payments Global Settings--->Define Accounts for Overpayments/Underpayments
T-code-OBXL
2.Enter the your chart of accounts . Choose Continue
3.Enter account number
Again account is Expense account.Reason for creating this one is because of following reason
There is a difference in payment. The difference can result from an underpayment or an overpayment.
The difference is within the tolerance limits for an automatic adjustment posting.The difference cannot be posted via cash discount adjustments.
4.Save your entry.
Like wise,
Transaction code OBA1-Defining Account for Rounding Differences
Transaction code OBXO-Define Accounts for Payment Differences with Altern. Currency
Transaction code OBXK-Defining Accounts for Bank Charges (Vendors)
Transaction code OBXI-Defining Accounts for Cash Discount Granted
Transaction code OBYH-Defining Accounts for Bill of Exchange Transactions
Hope this is help you in understanding.
If you want more clearity, please let me know.
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Parag -
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,
AbhishekHi 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
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