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

Similar Messages

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!

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

Payment terms & Down payments

Hi all SAP experts,
In my company the requirement is as follows:
1. When the order confirmation is done (sales order created), 50% of the order value is to be billed to the customer as first down payment.
2. After the delivery of the items is done, 40% of the order value is to be billed to the customer.
3. After the installation & commissioning is done, the remaining 10% of the value is to be billed to the customer.
Requirements:
1. How do I map this scenario in standard SAP?
2. Can I use the payment terms to control the part payments to be received.
3. My client wants to know at any stage, the amount received from the customer for the sales order & the remaining amount to be received from the customer.
Please help me to map this scenario.
With best regards,
Niyaz.

hello, niyaz.
i was able to test your requirements on 11 oct 2008. here were my findings:
1. your requirement for 50%, 40% and 10% payments can be satisfied by using BILLING PLAN and using MILESTONE BILLING, which you must activate on sales doc header and item levels. you can specify that the first payment is a down-payment (which is not included in the 100% collectible, and you must settle the downpayment... more on this later).
the 40% after delivery is also confirmed in the sales order (billing by default will be order related as SAP standard). the 10% will follow the same logic.
2. you can use different payment terms for each of the payments (50%, 40% and 10%). but these will be at header level, as the payment terms at item level are not modifiable (unless someone can find out how). i tried deactivating 'business item' at VOV7 but you cannot do this if you are using billing plans.
3. your client's remaining requirements can be tracked by the document flow at header level, and by using the reports in FI and Credit Management.
hope these helped you.
regards.
Edited by: jonathan yap on Oct 11, 2008 12:51 PM

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

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

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

Terms of payment specifying payment by installment not possible here

Hi Expert,
I create new payment term in T-code OBB8 and OBB9.
When I create PO I found Error Message no. 06754 (terms of payment specifying payment by installment not possible here).
How to solve it ?
Thank,

I think you have checked the Indicator: Term for installment payment in the payment term.(OBB8)
That's the reason you are getting this error message.
Use
Terms for installment payment are used as an entry tool when entering
    documents in Financial Accounting. Instead of entering several line
    items, you only enter the data for one item. The breakdown is carried out
    by the system automatically by means of the payment terms.
Procedure
Set this indicator if several items with different due dates are to be
    generated from one line item when using this payment term.
Dependencies
For all payment terms that stand for an installment payment, the
percentage specifications must be defined for the breakdown of the total
amount. In addition, you must specify which payment terms are to be valid
for the resulting partial amount for each percentage rate.
The terms of payment key can determine the following:
The valid cash discount rate for an individual payment with a maximum of 3 payment terms (first cash discount period, second cash discount period and due date for net payment) and also a baseline date for the payment, or
The terms of payment for installment payments.
If you have maintained a key for the terms of payment in the vendor master record, the system automatically defaults this key whenever you enter an item for this vendor.
The following description applies to individual payments. For more information on the terms of payment for installment payments, see Terms of Payment for Installment Payments (Accounts Payable)

Installment based payment terms

SAP Gurus,
Can you please tell me how to create installment based payment terms in sap.
With any situable scenario......
Regards.

Hi,
SAP provided standard installment payment terms:0009.
Eg: 30% for 15 days, 40% f0r 30 dyas, 30% for 45 days installments
Create one payment term: Z001 (here select installment in config)
create payment term for 15 days: Z015
Create payment term for 30 days: Z030
Create payment term for 45 days: Z045
Now in this node: Define Terms of Payment for Installment Payments (obb9)
Z009 instalment 1 30% Z015
Like that you assign all three payment terms to Z001
Regards,
Azeem

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

Seperate GL account for rentention amount using Instalment payment?

We have an interesting issue, our client is having a requirement regarding installment payment. Please find below the scenario. We hope to get some ideas in this regard.
We are using payment term with settings for installment payment.
Example: Payment term Y001 Installment payment, Y002 Installment payment 90% and Y003 Installment payment 10%.
Invoice Amount : 1000
90 % outstanding for immediate payment : 900 (to be accounted in Vendor reconciliation account)
10% retention till tax certificate produced : 100 (to be accounted under separate retention GL account)
While posting invoice through MIRO & FB60, our client wants to split the amount in to two parts 90% outstanding to the Vendors and retain 10% of the invoice value till the tax returns certificate is produced. Presently Amount splitting is made to take care of this using a payment block in payment term Y003. This helps in retaining 10% of the amount till the tax paid certificate is produced.
Postings are happening with the split amount, to the reconciliation account maintained for the Vendors. This is presently showing the total payables towards vendors. But for statutory reporting purpose, we now need to maintain a separate GL account for the retention amount. This is again required to be a Vendor reconciliation account for control over outstanding amounts with respect to respective vendors.
We are exploring different alternatives to get this done. Please advice if you have come across any such scenario.
Thanks in Advance.
Regards,
Viswanath

I understand when you use your Installment payment term, system must be posting two lines for vendor i guess must be like;
Expense                      Dr.   1000
     Vendor                                     Cr. 900
     Vendor                                     Cr. 100
Ok eventually both 900 and 100 goes to the same GL (Reconciliation)Account but your client wants that the 100 should goes to other GL accounts.
One of our collegue in this forun has answered you to use Special Gl Indicator, the solution upto some extent ok but i guess you will loose the automation of amount splitting which 900 and 100.
So i would advice you the following;
Create one Retention Reconciliation Account
Configure Alternative/Reconcilation Account in the IMG ( This config allows you to change reconciliation account while posting invoice )
So at time when you simulate your accounting entry double click on 100 line and manually enter the retention GL Account. I guess the solution is manual and painfull but if special gl indicator can be used with automation then you must go with that
regards,
FICO

Payment Terms for more than 3 payment terms in OBB8

Hi Gurus,
Please advise as to how to create for more than 3 instances, say 4 or 5. Because standard SAP provides only for 3. Let me brief you as below :
- I created the 5 payment Terms in OBB8. 5001 (clicking as instalment) ; 5002 for 5% - 30 days ; 5003 for 4% for 60 days ; 5004 for 3% for 90 days and 5005 for Net 180 days.
- I assigned these 5002 to 5005 to 5001 with say 25% instalment each in OBB9.
- Now I assigned this 5001 payment term in the Vendor Master.
- Posted new FB60 invoices with say 01st Oct 09 as Document Date with say Rs. 25000/-
- Now, I have to make the payment to the Vendor on say 15th November 2009.
- So ideally I am eligible for 4% discount on Rs. 25000/- since I am paying after 30 days and before 60 days.
- I am posting through F-53 with 15.11.2009 as the document data, and now the system is not calculating discount for the first instalment of 25% instalment and for the next 25% the discount is calculated @ 4% on 25% only.
- Now my requirement is to calculate 4% discount in Rs. 25000/-.
Can any one suggest the required approach.
Vikas

Hi,
Unfortunatelly payment terms in OBB8 is working as designed and the functionality cannot be enhanced. In the standard system you cannot add additional levels in the transaction OBB8.
Instead you can check the option of using Terms of Payment for Installment Payments (transaction OBB9). Terms of payment for installment payments are made up of individual terms of payment. An individual payment term can be assigned to each installment. When you post an installment payment, the total amount is split up into individual items for each installment and each installment
is calculated with the relevant payment term. For more information on maintaining terms of payment, refer to the Implementation Guide for Accounts Receivable and Accounts Payable.
The terms of payment key can determine the following:
-The valid cash discount rate for an individual payment with a maximum of 3 payment terms (first cash discount period, second cash discount period, and due date for net payment) and also a baseline date for the payment
-The terms of payment for installment payments.
You define the following for the terms of payment key for installment payments:
- Sequential number of the installment
- Percentage rate for the installment
- New terms of payment key for the installment item
The percentage rates you specify must total 100%.
Example
Suppose you can create payment term NT30 (30 days net), NT60 (60 days net), NT90 (90 days net).
Installment terms of payment
RT01   1   30%   NT30
RT01   2   30%   NT60
RT01   3   40%   NT90
I hope this helps.
Regards
Ravinagh Boni

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)

Terms of Payment - advance payment 3 %

Hi All
How to configure the terms of payment for the below req.
"Advance payment 3 %"
Plz suggest.
Regards
Prasad

Hi,
You have to create instalment payment terms using OBB8
1) due immediat 3%
2) due 10% 20 days
3) 87% 30 days etc..
crate a another payment term using OBB8 like INST clicking installment button and assing the above 3 payment terms using OBB9
Payment term Inst 3% Payment term 1
Payment term inst 10% payment term 2
Payment term inst 87% payment term 3
it will treat as 3% due immediat when the po raised, and the balance due as per dates.
Hope this will help
Vara

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

Payment terms- installment payments

Similar Messages

Maybe you are looking for