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

Similar Messages

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

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

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 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

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

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 based on Turnover with vendor

Hi Friends,
I want Discounts to be triggered in PO depending on the total turnover for a vendor.
How to acheive this?
Here the Discounts for an order using RL01 are not applicable.
Regards
Krishna

if not RL01
then u wikll have to use rebate agreement
this will only help u to get the discount
In rebate aggrement u will have to give peried for which this agreement is valied and when u want to do the settalment.
u will have to give the condition how much discount on what volumm
at the ent of each period u will have to run settelment it will check the volumn for that period and award discount and also creat a credit note
hope this helped
Reward accordingly

What is the purpose of vendor discount groups

Pls explain the purpose of specifing a discount group for vendor.

Is this question for SAP Business One?
If not, please check the following and close your thread:
Discount Type Group
Technical Name: 0RPA_DTG
Use
The discount type group is a logical summary of the discount types and is maintained in PIPE Customizing. The following are provided as standard values:
·        3000: Coupon
·        3100: Promotion discounts
·        3200: Membership discounts
·        3300: Local discounts
·        3400: Employee discounts
You also have the option to define your own discount type groups here.
This characteristic is supplied by DataSources 0RT_PA_TRAN_CONTROL and 0RT_PA_TRAN_TOTALS is filled by PIPE field DISCTYPEGROUP.
Thanks,
Gordon

SNP - considering vendor discount in Optimizer

Dear colleague,
Can some body provide me with the information if i need to consider the supply discount given by the vendor in the optimizer to maximize the discount amount in the total cost.
Thanks
Sandeep

>
kiran badgujar wrote:
> Hi,
> Our vendor is offering doscount; however business requirement is to have base amount same for calculation of discount as well as for tax in PO.
>
> Please suggest best possible solution to achieve this.
>
> Regards,
> Kiran
This can be accomplished in calculation schema. Suppose your base amount is step 1, your discount is step 2 and tax is step 3, so in from to fields of discount and tax you mention 1, this way both conditions will be calculated on step 1 which is base amount.
Hope I am helpfull
Edited by: Afshad Irani on Apr 29, 2010 4:37 PM

Back up discounts from Vendors in consignment purchase

A retailer purchases stock on consignment from a vendor before the start of the season
During the season , for slow moving stock the retailer enters into a markdown arrangement with the vendor where for specific SKU the retailer marks down the price by certain percentage which is shared with the vendor.
For example: If for sports sweat shirt for the XXL sizes the retailer wants to offer a 50 % discount on the product . Of this discount 25% will be shared by the vendor/manufacturer.
During the settlement of the vendor's liability this additional discount needs to be reduced from the vendor payables.
How can this be managed .
Could someone please help

Hi,
Create separate condition type for Vendor discount and company discount and assign to separate G/L account though Account Key
While settlement..compair with vendor discount G/L Account
Regards
Vijai Jain

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
Tax Category? > just put "-" input tax

Error Message Posting a Non-PO Vendor Invoice

The instance is ECC 6.0.
While trying to post a non-PO vendor invoice, I am getting the below error message:
"RKEAK-FIELD(12) is not an input field
Parked document could not be posted 00 S 347 RKEAK-FIELD"
Does anyone ever bumped into the same error message or have an idea what is generating the error?
The issue started happening after one of the accounts in posting (Vendor Discounts) which is a CE was changed to post to Profitability Segment in OKB9. This error was not faced earlier when the account was posting to Cost Centers.
We are using new GL and Doc Splitting functionality.

Thanks for your reply.
I checked the note and it says the affected release are 3.0 D to 3.1G. But we are on ECC 6.0. Moreover, as per the note this is an issue with Tcode FB01, but I am using tcode FB60 for creating the non-PO invoice...
Please let me know your thoughts...

Vendor discounts

Similar Messages

Maybe you are looking for