Vendor Discounts in SAP

Hi,
What is the difference btw cash discount and trade discount?
In SAP how the vendor discounts are provided in both FI and MM.
I know that the discount will be calculated through payment terms.
But in purchase order, in condition tab, I can see the price breakup, discount, taxes etc.I guess it is from pricing procedure.
So my question is, discount will be calculated from payment terms in both FI and MM
or is there any other procedure to calculate the vendor discount in SAP.
I need 1 more clarification. What is the purpose of pricing procedure and why the discount will be included in pricing break up.
Will the discount which is there in pricing proceedure, appeare in the books of accounts?
I need to prepare a functional document for vendor discounts in SAP.For that i want these clarifications.
Pl answer me.
Thanks
Radhika Eluri

Hi,
Cash discount is given when the vendor is paid according to the payment terms. If the vendor is not paid within the date mentioned in the payment term, the cash discount is lost. This is not reflected on the invoice.
Trade discount is given based on the deal finalised. This discount is given on the price of the material and the net payable is reduced in the bill itself.
Based on the above explanation - normally cash discount is calculated at the time of payment and based on the payment terms while trade discount being a component of invoice, is calculted based on the pricing procedure.
If there is a discount calculated based on the pricing procedure, the accounting entry will be passed based on the GL account assigned to the account key which is linked to the condition type for discount.
please revert for further clarification.
Thanks and Regards,
Anit

Similar Messages

Discounts in SAP Retail Store

Hi gurus,
Do you know if it is possible to have discounts (like price conditions in standard SAP) in SRS functionality for local vendors in a specific store only?
My scenario is that I have a store that negociate directly with a vendor and store has discount with that vendor if it buys a certain quantity of articles. If I can not do this in SRS I can not have this information in the system and invoices could be posted without this info.
Thanks

Hi you can use Vendor discount for this senario,
create the condition record and then upload to SRS
regards
Satish

COPA - Third Party Drop Ship Returns - Vendor Discounts

Hello -
This is challenging so I hope some of you can help me please!
Can anyone explain to me how vendor discounts work in copa as they relate to third party drop ship returns? We use net vendor invoices where discount is taken at time of vendor posting and offset by clearing account.
We have several scenarios where we cannot reconcile FI and COPA for COGS account because of the discount on the vendor credit memo.
An example:
We have created the sales order and purchase order for the process. Then we do a migo and a miro from the vendor.
The vendor document has a discount of 1%, so if it costs $100, here is the accounting:
MIGO -
dr. cogs 100
cr. gr/ir 100
miro
dr. vendor discount clearing 1
cr. cogs 1
dr. gr/ir 100
cr vendor 100
then we bill the customer.
Copa at this point gets hit with 99 debit to cogs value field (100 -1 =99)
then we process the customer credit memo request.
Then we process the vendor miro credit.
dr. cogs 1
cr. vendor discount clearing 1
dr. vendor 100
cr. gr/ir 100
At the time the vendor credit memo is posted, sap inserts a new copa line-item on the customer billing document with $1.00 debit to copa.
then we reverse migo
dr. gr/ir 100
cr cogs 100
And then we bill the customer credit memo, which creates another copa document that credits copa with $99.00. why doesn't this create a copa document of -$100. this would help tie out copa and fi.
If you go through and look at all cogs postings on FI side, the credits and debits = 0
If you go through and look at the cogs posting in COPA, the credits and debits = 1
therefore, fi and co don't tie.
please give me any ideas that might help me.

Hi Valerio,
Have you found any solution for your issue?
We have a similar problem with 3rd party drop ship orders and COPA. Cost of Goods Sold Drop Ship is being charged when we use MR11 to clear GR/IR account. This is causing reconciliation issues between COPA and the General Ledger.
Let me know if you have come across any clues?
Thanks.
Ram

How to handle vendor discounts based on the qty / value procured.

Hello
       How to handle vendor discounts based on the qty / value procured.
a.       Scenario: you have entered into a contract with vendor that you will buy goods worth Rs 10000/- and if you buy goods worth more than 100000 the vendor says he will give a discount of Rs 5000/- @ the end of the year.
i)                    How to handle this sceneriou2019s with SAu2019s
ii)                   What does STD SAP offer.
Regards
Sapman man

Hi,
For the discucount condition type, you have to maintain scales.
Take Condition type - Discount Value ( RB00)
Discount Value ( RB00) - Means Fixed discount. For this condition type, you have to maintain Scale basis as Value scale 'B' in the condition type customization.
Transcation : M/06
Select your condition type RB00 and click on the details icon.
In the Scales block, you have to maintain and save.Calculation type = Fixed amount
Scale basis = Value scale 'B'
For this condition type, you have to maintain scales in the inforecord.
Transcation : ME12
Select this condition type, click on the Scales icon. There you have to maintain like
From : 10,0000            Rate: 5000.
It means, if the document value is reached 10,0000 then discount is 5000rs. If the value islessthen the 10,0000 then no discount.
Regards
KRK

Early Settlement Vendor Discount

Hello,
From the 1st of April 2015, the UK VAT legislation has changed in relation to early settlement discount where the Vat charged has to be on full invoice cost. If invoice is paid early then a credit note will be sent from supplier to account for the VAT adjustment or a credit adjustment will need to be inputted on the vendor account. Is there a way in SAP to automatically adjust the VAT if an early settlement payment is made?
Regards

Dear sir,
I tried all the sequence given by u
i created a po 10$, discount.5 $
in migo grir accounts says 10$, inven 9.5$ , my gl acc 0.5 $ pl note no sign
I maintain negative sign in contion type of RL01
In moro it is showing
GRIR 10 $
Vendor 10$
I created own account key and accural key and assigned in RL01 Ctype of pricing proce
I assigned the GL ac in obyc agaist the account key and accural key
The posting keys are debit 40 and credit is 50
pl note that i have to reports of vendor discount every month
the above is clien reqt
waiting for ur reply
guru

Automatic replication of vendor masters from SAP R/3 to EBP

Hi
For this issue I found the below program and steps to do the automatic replication of vendor master from SAP R/3 to EBP
PROGRAM BBP_VENDOR_SYNC
The program BBP_VENDOR_SYNC automatically synchronizes the backend vendors with the SRM system.
To run the program BBP_VENDOR_SYNC, you first have to make the following settings:
Path in the Implementation Guide (IMG):
Supplier Relationship Management --> SRM Server -->Technical Basic Settings -->Settings for Vendor Synchronization --> Make Global Settings
Supplier Relationship Management --> SRM Server -->Technical Basic Settings -->Settings for Vendor Synchronization --> Define Settings for Each Backend System
Then you have to make the following settings in transaction SA38:
· Enter program BBP_VENDOR_SYNC.
· Click on the pushbutton Background.
· Enter the report name BBP_VENDOR_SYNC.
· Either define a new variant or use an existing variant ( The new Variant as Test Vendor)
· Click on the pushbutton Schedule.
· Enter the job.
· Define the start date.
· Either schedule once or schedule periodically. Then you have to define the period interval.
I followed the above mention steps and I am able to setup the Schedule on timely basis and the job was completed successfully, but the vendors are not replicated successfully .
I am receiving the below error in transaction code SLG1.
1.The Specified Node does not Exist in the Org. Plan(Message no. BBP_VENR006).
2.No Vendor Replicated from Backend MD1CLNT(Message no. BBP_VENR017).
Please check and advice.
Thanks & Regards
Sada

Hi Sadasivam,
Make Global Settings
Use
In Customizing for vendor synchronization, you define between which mySAP or ERP backend systems and the EBP System you wish to automatically synchronize the vendor master data. This setting is necessary in order to start a job-based execution of the synchronization, so that the vendor master data that is newly created or changed in the backend is updated regularly in the EBP System.
Requirements
You wish to use the automatic vendor synchronization functionality.
In the Implementation Guide (IMG) activity Define RFC Destinations, you have defined the RFC destinations for your systems.
Under Define Backend Systems, you have defined the backend systems for your systems.
Activities
Customizing for Vendor Synchronization consists of two parts. In the first part you make those settings that are valid for all backend systems. In the activity Make Settings for Each Backend System you can define or display detail data for the individual backend systems.
Make Global Settings
By setting the indicator Create New Vendors Also, you can determine that those vendors newly created in the backend systems are also newly created during the synchronization. If this indicator is not set, the only data updated is that of the vendors in the Enterprise Buyer System whose data was changed in the backend systems.
Note:
If you have not yet made an entry here, an empty screen appears when you start the activity. To make the settings, choose New entries or press F5.
Further Settings:
Carry Out Address Check for Duplicates :
Organizational Unit in EBP for the Vendor
Enter the eight-digit number, for example, 50001234.
Vendor Number Assignment Type
In the dropdown box, choose the method with which the number is to be allocated when a new vendor is created, for example, internal number allocation.
Hope this makes you more clear. My mail i.d is [email protected]
Rgds,
Teja

Query for Vendor Payment in SAP

Hello All,
I am a sap abap developer with little knowledge in SAP MM and SAP FI modules.
As per some requirement of my company ,i have created a PO then its GR and finally IR.
Now when i checked EKBE table (History per Purchasing Document) , i found two record in this table out of which one with
VGABE = 1 (Good Receipt) & another with VGABE = 2 (Invoice Receipt) .
Now my requirement is ,i want a entry in this table with VGABE = 5 (Payment) but i don't know how to do payment of vendor in sap so that this table will populate with a entry for payment type.
Please help me and let me know what will be the flow with tcodes to do the vendor payment in sap.
Please reply ASAP.
Thanks in advance.
Regards.
Abhinav Goel.

Hello Mr.Raman,
Thanks for your response to my query.
As per my company requirement i have to track duplicate payment made to the vendor against same PO.
So for that after completing the cycle PR-PO-GR-IR-F-53 finally i found two records in BSAK table out of which :
One record was with my accounting document no from my invoice receipt of type RE.
Another record was with the vendor payment clearance document with type KZ.
Now again i have done payment to the vendor using F-53 tcode and now i found one more record with belnr = last payment document no and augbl = new payment document no. with type KZ.
So if i use below mentioned logic to track for duplicate payments made to the vendor ,then it will be fine or if not can you suggests me the needful changes in the logic.
1.) Check If record exists for my belnr no from invoice recipt in bsak.
2.) Take AUGBL No for this BELNR No and check if record exists for this AUGBL with type KZ.
Note:Means payment is done to the vendor upto this logic.
3.) Now if with the found record with type KZ any other record found with type KZ it can be taken of as duplicate payment made to the vendor.
Please suggest me if above mentioned logic is fine.
Regards.
Abhinav Goel.

Set-up Vendor rebates in SAP

Hi SAP Gurus,
Good day!
Please help. How will I Set-up Vendor Rebates in SAP? Currently, we are getting rebates from our Vendors based from the total sales of an item or based from the total purchased amount/quantity in a given period. How will I incorporate this process in SAP?
From my research, I will have to use the idea of a "Subsequent Settlement". Any ideas on how will I start implementing this, what are the needed steps in customizing?
Thank you!
Mik

Hi,
Process Flow: -
1. XK02 - Changing a Vendor Master Record (Activate "Subsequent Settlement" and "Sebseq. sett. index" in Purchasing view)
2. MEB1 - Creating a Rebate Arrangement
3. ME21N - Creating a Purchase Order
4. MIGO - Processing the Goods Receipt for the Purchase Order
5. MIRO - Processing the Incoming Invoice on the Basis of a Purchase Order
6. MEB4 - Creating an Interim Settlement
7. MEU2 - Creating a Business Volume Comparison
8. MEB2 - Creating a Final Settlement
Refer below mentioned links;
[Rebate Processing in Purchasing u2013 Subsequent Settlement|http://help.sap.com/saphelp_46c/helpdata/en/fd/45c0e19d6411d189b60000e829fbbd/content.htm]
[R25: Subsequent Settlement|http://help.sap.com/bp_bblibrary/500/html/R25_EN_BR.htm]
[Subsequent Settlement|http://esoadocu.sap.com/socoview(bD1lbiZjPTgwMCZkPW1pbg==)/render.asp?packageid=DBBB6D8AA3B382F191E0000F20F64781&id=E018F070242D11DA12D100306E055DA7]

Vendor discount

Dear MM consultants,
I had a sitution as followsThe client reqt is as follows
Vendor discount is to be displayed in MIGO and miro , same to be reported every month.
I have done following
In MEK1 created a ctype rl01 and assigned 5% for vendor
i created a GL account say 111111 by copying a std on in FS00
I created a new accounting key and accural key and assigned the same in RL01 Ctype, accural is activated in control data, condition class is negative one for rl01
When i creat a po , vendor discount is considered 5%
when i do migo for 10 $ fi doc are as follows
Inventory 9.5$
GRIR acc 10 $
111111 ac 0.5$
is the above is correct
When i do miro posting are as follows
Vendor 10$
GRIR 10$
the above is not correct since vendor will get full amount
request u to put ur suggestions or if u have any alternate pl give me the solution
waiting for reply
guru

Hi,
Why dont you can make use of the standard discount conditions which are available in the standard Pricing Procedure. What is the functionality behind creating a new G/L account for this ?
If you want it to capture it for the reporting purpose. You can very well get the value by developing a Z report with the following logic. For a PO in the EKKO table get the KNUMV and pass it to the KONV table to get the respective discount condition and display its value.
Regards,
RitiG

Vendor Discount postings

Hi,
When I am posting an Invoice and entering the discount in the payment tab and post the invoice it does not post the discount to any account.Ideally it should post the discount to some account.
It's not posting to any account.
What could be the reason ?
I have a separate GL acct(193000) for vendor discounts.
Do I need to have further assignment with respect to this GL account in FI ?/
2.
I want to change the exchange rate at the time of entering vendor invoice.But the field is greyed cant change.
Any suggestion ?
In PO I have not marked exchange rate as fixed.
Please suggest settings required if any.
Thanks in advance.
Regards,
manOO

Hi Ashok
Thank you very much for your prompt reply.
Let me try to explain. Payroll deducts amounts from employees, ex. housing, garnishee's etc. Those deducted amounts are send to FI to the relevant Vendor account. AP will then pay the vendor one global amount for all the amounts deducted from the different employees.
Ex. Empl 1 - deducts R50 for Attorney ABC (from payroll)
Empl 2 - deducts R100 fro Attorney ABS (From payroll)
Payroll executes program RPCIPE00 that creates one document in FI.
CT's Attorney ABC and DT's the payroll clearing account. FI-AP will then pay Attorney ABC via F110 on behalf of the employees.
Sometimes the business will have an agreement with these type of vendors to take a discount if paid early.
Hope this helps.
Louise.

Vendor discounts

Can someone please explain me what account should be established "Cash discount taken" or "Cash discount lost" if the vendor discounts are tracked at gross. And which account "Cash discount taken" or "Cash discount lost" to create if the vendor discounts are tracked at net.
Please also explain why would that the particular cash discount account be established for each tracking type (net and gross).
Explain with example
Thankyou very much

Hi,
As per my knowledge, Cash Discount received & Cash Discount allowed are the two concepts are related to Profit & Loss account (Vendors & Customers.) Generally when we make payment to Vendors we go through Payment Terms T.Code OBB8. As per the Payment terms we do business with Vendors & Customers.
Payment Terms Like if a Bill of Rs.1,00,000/- Invoice from Vendor - if we make payment within <10 Days discount received 3%, >10 - <20 days 2% and >20 - <30 Days No Discount received as well as payment received from customer. the same terms we can use othwise we may create based on our company wish, it is also configure in OBB8.
For this We have to Create 2 GL Accounts in FS00
1)Cash Discount Allowed - Expenses Group - Customers
2)Cash Discount Received - Income Group - Vendors
Configuration of the above accounts
T.Code OBXI - Cash Discount Allowed
Select Accounts Give the Co.Code Account Number which you created in GL Master Expenses Group
Select Posting - Select Debit & Credit Check Box
Save
T.Code OBXU - Cash Discount Received
Select Accounts Give the Co.Code Account Number which you created in GL Master Income Group
Select Posting - Select Debit & Credit Check Box
Save
Then Whenever you make a payment & receive we select payment terms which we areated in OBB8 then it allows entry to post cash discount Allowed & Received, it comes in blue font. double click on it enter + Save.
If useful don't forget to reward.
Thanks & Regards,
Muralikrishna

Vendor discount value from FB65 to COPA is getting updated in wrong value filed

Hi Experts,
As per the Business requirement vendor discount during the credit memo should be updated in COPA report. some times system posts the vendor discount value into VVXXX value filed as per the configuration done in PA transfer structure. some times its getting updated with another VVYYY value filed. It should update only single value filed as per the PA transfer structure.
It will be good if you can share your thoughts on the above issue.
Regards
Sambasiva

Hi Samabasiva,
Do you mean system is posting the discount value in FB65?
May I know what Accounting Entry is posting with discount for Credit Memo?
And also is there any Exit or Substitution Rules are Implemented.
Regards
Srinu

Vendor Trade Discounts in SAP

We are using a scenario where Purchase Orders are getting created by Vehicle Management System. The material being purchased is split valuated & Batch managed ( i.e Valuation Category X ). The Purchase Order is created for a gross amount. say 100 USD. During Goods Receipt, there are deductions carried out i.e to the extent of 50% ( via MM Discount Condition type ). However we need the Stock to be valuated @ 100 USD which we can achieve by making the Condition type as statistical. However, we need the Vendor Invoice to be posted @ 50 USD ( based upon 50% deduction ). The difference could be posted to Purchase Price Variance. Could you please advise how to carry out this configuration.

Hi,
Cash discount is given when the vendor is paid according to the payment terms. If the vendor is not paid within the date mentioned in the payment term, the cash discount is lost. This is not reflected on the invoice.
Trade discount is given based on the deal finalised. This discount is given on the price of the material and the net payable is reduced in the bill itself.
Based on the above explanation - normally cash discount is calculated at the time of payment and based on the payment terms while trade discount being a component of invoice, is calculted based on the pricing procedure.
If there is a discount calculated based on the pricing procedure, the accounting entry will be passed based on the GL account assigned to the account key which is linked to the condition type for discount.
please revert for further clarification.
Thanks and Regards,
Anit

Automatic cash discount in sap fico

Dear Experts
i had a query in which i needed the solution for the query , My query is that i need to know that if i take the cash discount terms of payment as 60 days and some vendor pays me before 60 days i.e around 30 days then please let me know that whether the system would calculate for 30 days or will show the cash discount for 60 days .
Thanks in advance for helping me in this query
Regards
Devendra Mohan

Hello
Please go through the link:
http://help.sap.com/saphelp_47x200/helpdata/en/e5/0783f54acd11d182b90000e829fbfe/frameset.htm
When the total cash discount is calculated and if you desire to split the posting, check if document splitting is possible.
Think of substitution or check if an user exit exits to posts the splits to a different GL a/c
Reg
assign points if useful

Vendor Discount on Invoice

Hi,
On the vendor invoice we would like to change the cash discount tolerance amount. It only accepts 2% discount but we would like to remove the limit. Also we would like to be able to enter the discount as a dollar amount if paid within a certain time period.
How can i proceed???
Thanks
KB

Hi
SAP Tcode OBA3 provide two options to create tolerence. First is percentage and second is amount. If you maintained tolernece in one second should be blank.
In your case you need to remove tolerence limit maintained of 2% in OBA3. This will allow you to post the disount amount to vendor more than 2%. if you want to maintain dollar limits only you can maintain dollar amount in OBA3 setting only.
Thank you.
Regards,
Sachin

Vendor Discounts in SAP

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