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!

Similar Messages

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

Payment Terms Installment pay

Hi Gurus - Can anyone provide a solution for installment payment term with combination of fixed amount and % (txns OBB8 and OBB9).
For example : For amount 10000, 1st installment would be 4000 and balance due on specific date.
Thanks.

Hi Solomon,
Make 40% payable immediately and the balance in installments.
Example-
Create these terms in OBB8
Term1 - Installment terms
Term2 - Due immediately-40%
Term3 - Due after 30 days-20 %
Term4 - Due after 60 days-20 %
Term5 - Due after 90 days-20 %
In OBB9, maintain as follows -
Term1 1 40 Term2
Term1 2 20 Term3
Term1 3 20 Term4
Term1 4 20 Term5
If this is not what you are looking for, please elaborate your question.
Regards,
Mike

Instalment payment terms creation

Dear SAP Gurus,
I want to create Payment terms for Customer, with the following options:
Can any one help me how to create the Payment Terms (Installment Payment Terms) for the following:
S.No     Description                                             %     Due
1)     Advance                                           10%     Immediately
2)     Receipt of Bill of lading                      30%     90 days
3)     Receipt of safe receipt certificate      40%     90 days
4)     PTOC                                           10%     18 months from start of project
5)     FAC                                           10%     24 months after PTOC
Note: project business and in projects we receive advance once in lifetime of a project and after that with every invoice raised,in project there has to be created an advance line item, which is adjusted from time to time against the advance taken at the time of project start.
Please provide the same scenario with screen shots.....
Thanks & Regards
Yugandhar.

HI,
    We can crete instalment paymnet terms in OBB8. first you have to divide the payments in parts and the give link in OBB9,
please do for example if customer needs instalment payment terms 30% 20% 50% first we have create paymnet term in OBB8 THREE PAYMENT TERMS IN OBB8 AND NEXT WE HAVE TO GIVE LINK IN OBB9
Edited by: Gadupudi naresh on Apr 13, 2011 5:20 PM

Installment payment term in MIRO

Hi Guys,
Please help me to solve the problem
I have define a installment payment terms.
This payment I mantain in vendor master data both in accounting & Po view.
While creating PO it automatic capture from the vendor master.
Same is also capture in invoice intering.
But while invoice Posting it show the error " No additional apportionment possible for installment payment conditions".
My question is where we apportion the quantity.
Prompt answer should be highly appricible.

Hi,
after creating Payment term (Instalment) there is anthore transaction in which you have specify the % of instalment amount and refrence payment term
Hope this will help you
and please reward the points
Regards,
MS

Payment terms configuration issue

Hi All,
I have a requirement of configuring the following AR payment terms in the system
1) 50% payment due in advance 50% due 45 days from Invoice Date
2) Payment in advance
In OME2 how to configure the above terms for no. 1 , should i use the installlment option in while config...
Please provide me detail steps for config and also let me know how to take care Advance payment part.. We dont have customer down payment option in the project scope..
Regards,
Sandip

Sandip,
I understand you have to configure two payment terms.
1. 50% advance and 50% at 45 days from invoice date - this can be handled through instalment option and the percentage can also be fed there. but 50% advance can be handled only through downpayment option. A workaround is to set 'pay immediately '0 days' at the payment term instalment level and then knock it off with the downpayment document, later.
2. Advance payment - can be handled only through Down payment option in SAP.
Thanks
Rajalakshmi S

Reg.payment terms

Hi
[1].    Customer credit period =30 days
Payment should be made by 2 installments
1st installment at the time of delivery i.e 30% (10 days from posting period)
2nd installment after 20 days i.e remaining amount.(70%)
i entered values in installment window under Admin----setup--Business partner----payment terms
   installment =1
credit method =First installment
update tax proportionately
month =0
days = 10
percentage=30%
when am trying to add this ,a message showing
the installment rate must be 100% (message 3540-3)
and how to create 2nd installment
how do i configure the above scenario.
regards
raj
Edited by: raj kumar on Apr 6, 2009 12:32 PM
Edited by: raj kumar on Apr 6, 2009 1:12 PM

Hi
Thank u
i understood second option (apply tax proportionately)
but in first option(apply tax in first installment) when i included invoice tax amount to first installment,
For eg
total invoice amount =7904
tax amount= 304
1st installment=30%
2nd installment =70%
when i use second option i.e (apply tax proportionately)
30%   =2371.20
70%   =5532.80 this is ok but
in first case (apply tax in first installment) should be
30% = 2371.20 +304 (tax amt)=2675.20 but
          getting 2584 (how it calculated)

How to configar payment terms

We want payment term
90% against proforma and remaining 10% after submission of original invoice along with taxes and duties extra as applicable
In

In TCode OBB8, create [ 3 payment terms |Payment term -PREPAID 30%, BALANCE DUE NET 30;:
Payment Terms
Sales text / Own explanation Desc
Account Type
Remarks
Z001
90% on proforma (immd.) & 10% on original invoice
Customer
in payment terms section - tick Installment payment
Refer standard payment term 0009
Z002
90% on proforma (immd.)
Customer
Z003
10% on original invoice
Customer
In tcode OBB9.
maintain installment for Z001 or main payment term
Main Payment Term
Install Seq
Ref Payment Term
Z001
1
90.000
Z002
Z001
2
10.000
Z003
So, your payment Z001 - 90% on proforma (immd.) & 10% on original invoice is ready to use in sales order.
Try your this and share you feedback.
FYI, payment terms are configured by FI guys.
Regards
JP

Interest rates in payment term

Hi Gurus,
We have one requirement to create a payment term like this "Payment due within 30 days and 1% interest per month". How can we set interest rates in OBB8 transaction?
Regards,
P Gomatheeswaran

Hi,
In the Transaction code OBB8 you can define the INTEREST RATE and no of days for which till interest applies
goto the details of the Payment terms in the same transaction and in the screen you can find the tab with PAYMENT TERMS---installment payments.
In that tab you can enter the Percentage as 1% and no of days as 30.
So the interest will be 1% if the payment is due for 30 days.
Hope it is clear,
Please check and revert back if u need more details
thanks,
santosh

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....

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.

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"

Payment terms maintenance vs define terms of payment for installment.

Dear all,
In Payment terms we can maintain installment payments then what is the need for Maintaining installment payments again.
I am not understanding the functionality any body please explain with example.
Thanks,
Srini.

Hi,
Firstly. Terms of payment are maintained through OBB8 and if the terms of payment is in instalment basis, additionally you also need to tick the instalment payment checkbox and save. Secondly, go to Tcode OBB9 and for the instalment terms of payment maintain the required data like instalment, %ge, and payment term to be applied for each instalment. For ex : the payment term 0017 is in 3 instalments, first maintain the same in OBB8 and then go to Tcode OBB9 and maintain the data as shown below. To test the correctness of the same post the vendor transaction and check the results.
Terms of   Inst           %ge          Pymnt Term
payment
0017     1     30.000     0001
0017     2     40.000     0001
0017     3     30.000     0001
hope this clarifies.
regards,
radhika

Installment Payment Terms and SKTO link

Hello Experts,
I have defined a installment payment term in OBB8 and OBB9. When I use this new term on a sales order the cash discount (SKTO) is getting calculated as Zero for a customer. If I change the payment terms value on the sales order to something else the SKTO value is greater than Zero.
Where is the link between SKTO and payment terms? My SD consultant is off and I need to do this for an emergency business requirement. I appreciate your inputs on this.
Thanks in advance.

Thanks for quick reply Siva Ram. When I created a sales order and all the way to billing document, I don't see any discounts on the FI billing document. It divided the invoice amount into 3 installments. Say $300 invoice amount into 3 installements each with $100. If I create a sales order with a different payment terms say 1% Net 30 then I see SKTO has 1% cash discount on the sales order and the discount amount is posting to discount accural account on the FI billing document. For installment payment terms can we expect the same like 1% Net 30 discounts on SKTO? Is there any setting we have to do on the SKTO config?
Thanks for your time.

Payment Term - Installment

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