Payment Terms by Material/Material Group

Hi,
I realize that this topic has been covered many times in different threads. I've spent a day looking through threads and searching the internet, and am still fuzzy on the topic.
Our company needs to have different payment terms for two different groups of items. Group A needs payment by 30 days (Z003), and Group B needs payment by 90 days (Z009). Customers purchase these goods together in one order. I know there is no material master option for payment terms, but I have read about invoice splitting based on condition records set for materials or material groups, and I think that may work.
I think I have to set the payment terms in the condition record at VK11/VK31, and also have to configure the delivery to bill copy control in VTFL. This is all new to me, and I"m not sure where to start. I would just like to configure Z003 for Group A, Z009 for group B, and then have an invoice produced for each group upon a sales order being submitted. Any detailed help is appreciated!
Thanks,
J

Hans suggesstion is good.
Further to it,
Material group(MATKL) or Material Pricing Group (KONDM) are already in the allowed fields for pricing and you can use them. If you want to use any other field, then you need to add that specific field to the pricing catalog and also to pricing communication structure KOMPAZ.(ABAP will do that).
Create condition table with this newly added field and sales area based on your companies requirement.
Create Acc seq and assign the cond table to it
Create your condition type and assign the Acc Seq to it.
Add the Condition type to your pricing procedure at the end of all cond types...maintain it as statistical.
Then create the condition record using VK11 for this newly created condition type, maintain value / discount as *zero / blank and give the Paymnet terms which you need to be applied .
Then as per the materail, the payment terms from the condition record will flow in your order line item.
Sales Header Terms will be from Customer Master.
Invoice will split based on the different Payment terms at line item.
Thanks
Sai

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It is best practice to have cash discount only be cash discount and not other discounts. A 10% discount makes no business sense. Anyway, the system will post cash discount based on the AP invoice field 'cash discount base' this field can be different than the total invoice amount (say, cash discount base could be 100 dollars when the total invoice amount is 110 with freight). There should be a standard condition record in the MM pricing schema that feeds into the AP 'cash discount base' amount. So, yes it can be done.

Payment Term by Material

Hi expert,
Can we set payment term for each material. Do we have payment term fields in material master?
regards,

Hi,
Payments terms can be set in Condition record master data Transaction Code :VK11 In this case if you create a sales order and in that sales order you will have one terms of payment copies from customer master on header level .And in that sales order if you have 5 line items and for each line item you have maintained separate terms of payment in VK11 then in this case only header level terms of payment will work.
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Can we create Contracts based on material Group?
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Create a Quantiy Contract with Item Category 'M'- Material Unknown.
Then create PO refering to this contract.
System asks for material number or AAC. It also checks the material group against the one in the contract.
By defaut a warning message is issued if material groups do not match (message MEPO074).
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I have made 'payment term' mandatory for the customer/vendor account groups. However, for certain customers which was created earlier, there is no paymen term in the master record. When I try to create a PO, system asks for a mandatory payment term. But for the same vendor, when I try to create a FI invoice (F-43) it does not ask for any payment term and the invoice can be posted without a payment term. Why this is so ?

Dear:
Setting the payment term mandatory at Account group level make it mandatory for master data creation only. For transaction entries you will have to make changes in Vendor Recon account (go to OBC4...select field status group of vendor recon account ....Materials management..PO ) or in posting key in OB41.
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We have few payment terms for our company. Now we want to restrict payment terms based on the customer number
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Hi
The payment block is fine, i can either add a new payment block reason or i can assign the existing block reason and i can proceed
But what ever you have said will not control my user with the solution we have give, then the system will run if my user did things on correct process
I suppose we can do a validation, for this customer group this payment terms are allowed.
Something like that.
Hope it will work, can you put your valid suggestion
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Bala

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I have a scenario. Is it possible if the user want to manage the payment term & combine with tolerance group?
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Hello Tweety,
The Tolerance limit we define in SAP is tolerance limit per document,
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The payment terms in Purchase Order are defaulted from the payment terms maintained in Vendor Master. Hence, if we order any material on vendor, then also, the same payment term gets copied to Purchase Order.
We have set different Payment Terms with Vendor based on the material which we purchase from him. For example - For some materials, we have set payment terms as 30 Days Credit & for other materials, we have set payment terms as 60 Days Credit.
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Hi,
Thanks for your reply.
In this case -
1) I create the info record manually for vendor / material / plant combination.
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If maintained, then for further POs, should this get copied from the Info Record instead of Vendor Master?
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Dear All,
My client have 5 products and almost 100 customers, term of payment is different for every material, how should i cater this scenario, I can assign only one term of payment in the customer master.
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Hi,
One of the options is to maintain a 'Z' table with product-wise payment terms combination.
Ask your ABAPer to write the logic in User exit MV45AFZZ where appropriate payment terms will be picked at item level based on the product.
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Payment Card Information with Material Groups and Work Orders

When processing purchase transactions that were purchased using a payment card, standard functionality in SAP says the system automatically generates a parked document with authorized users allowed to post these documents. When these documents are being posted, does anyone know if the user can enter a material group and/or a work order number for reporting purposes?

>
Monique Stephens wrote:
> Training is not the issue. Material groups are a matter of personal preference.
>
> My main concern is if it would be a violation of SOX if the material group is changed from the original shopping cart on the PO itself.
>
>
> Monique
If your business is privately held then SOX does not apply to you. If your business has stock w/shareholders then it does.
Correcting or making the material group more accurite is something that would be MORE SOX complient and not a violation.

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We would like to be able to define different payment terms for a vendor, this is based on a subset of material, generally where one vendor is shared by multiple buyerships different payment terms have been negotited for different product ranges.
e.g. ABC Ltd supplies stationery @ 0 days, and hardware at 45 days.
Is there any way we can define different payment terms in for one vendor in one invoice as per different matarial/product range?
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Hi,
You can use the vendor sub range to define parameters based on differences in products. Read the link below:
[Vendor sub Range|http://help.sap.com/saphelp_46c/helpdata/en/12/084445470311d1894a0000e8323352/frameset.htm]
[Sub Range details|http://help.sap.com/saphelp_46c/helpdata/en/2c/614e3981187116e10000000a114084/frameset.htm]
You can also use alternative data for vendor at plant level, if your need is to differentiate between plants and not materials.
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Cheers...

I want to maintain payment terms...material wise

hi,
Experts,
here i want to maintain vendorwise and material wise payment terms....Vendorwise payment terms its ok i got it but how to maintain paymet terms for material.....is there any way to do maintain material wise payment term...
thaks in advance.......
Regards....
sunil.....
Helpful Ans will be awarded...

Hi,
Sorry to say but all the alternatives suggested did not work.
Because fundamentally what you are trying to do Sunil is not logical.
e.g. X person wants 100 qty of material, y person wants 2000 qty of material, the terms of payment are always dependent on the quantity of material, never on the material.
also various other factors play a role in determining payment terms:
like credit check,
payment history,etc
these terms are all related to the customer only.
thus depending upon the fact that majority of its dependant fields are invovled with customer, it can only be configured with respect to customer.
plz clarify on the situation as to why do you need to configure it on material basis.
regards,
Siddharth.

Error in CIF while change in Material Group in R/3

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I have assigned Material Group Description as an external field in Extra Tab in APO. When I create a material the CIF updates the filed correctly.
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When I delete the queue and re execute the IM the change is updated in APO.
Can someone tell me why the above CIF error appears for every change done.

Nilesh,
It is common for experienced ABAPers to be able to determine this on their own. Normally all you should have to do is explain in business terms what is happening, and the ABAPer should be able to troubleshoot the problem without you first discovering the code details for him.
There are a couple of ways to populate the aux fields in the SCM product master. The first userexit I would look at would be CIFMAT01 on the R/3 side.
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Duty calculation for import PO for a specific material group

Hi All,
As per company requirement, we need to do changes in duty calculation for import PO for a specific material group.
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Material: ABC , Basic Price = 1000, MRP = 2000 and duty is 10%
Duty Amt = 2000(MRP) - 700(35% ABTT) *10%(Duty) = 130
Cess 2 % = 2.6
Ecess 1 % = 1.3
Total duty = 133.9
This duty (133.9) paid to custom vendor and loads in material cost.
New Requirement: For vendor payment purpose duty should be calculate as above but for material cost should be calculated on Basic price.
For Example:
Material: ABC , Basic Price = 1000, MRP = 2000 and duty is 10%
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Kindly suggest how to achieve this.
Regards
Jitendra

Hi,
   Please check whether the requirement is logical or not. Did you check the requirement with your accounts team?
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Usage of material group...

Hi there,
We assign the material group to a material in the material master. As per my understanding we have material having similar attributes under the same material group....
Can you pls enlighten me the advantages of that from SAP point of view .... & the buisness tranasctions where it helps....
Points will we rewarded to helpful answers
With Regards
Kaushik

Hello Kaushik,
Addition to experts suggestion, Material group is used for authorization, for account determination incase of text material purchasing and as a release characterisic as well.
so if you sum up
Material group is used
- To allocate the work within organizaiton
- To devide further down level of material type
- For release procedure
- For reporting purpose
- To use for creating purchasing document incase of without material master data
- To use in long term purchasing agreement
Hope this helps.
Regards
Arif Mansuri

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