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
Similar Messages
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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 EluriHi,
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 -
Trade discount in marketing document
Dear SAP Prod. Dev.Col. Teams,
Currently trade discount in marketing document is not posted to journal entry. The customer want it because they want to have the discount is applied in the marketing document rather than in the payment document.
Manual journal entry is not acceptable since it will add new effort meanwhile the software like SAP B1 is intended to ease the daily working and make their working time efficient and effectively.
Please give a concern to this request.
Thanks and Rgds,I managed to solve it using WA
-
Creation of Vendor Aging Report in SAP BI.
Hello,
There is requirement to create the Vendor Aging report in SAP BI Cube.
In order to show the Aging of the Vendor in different buckets.
Can anyone help me out with the Links/Blogs/Wiki ... URL's .
I tried finding in net couldnt get anything related to this.
Thank you for the help in advance.
Regards,
AdhviHello Obaid,
Thanks for the reply.
got the URL for Vendor Aging Report ..which has better detailed information.
http://help.sap.com/saphelp_nw70/helpdata/EN/69/b4e9503d6a4f39b66e67b1cedf41af/frameset.htm
0FIAP_M30_Q0003 not found in the BI Content
Creation of Vendor Aging Report in SAP BI.
Vendor Ageing formula
If you come across any further Customization of the Reports related to the Vendor ageing reports based on the URL mentioned below...let me know.
Thanks & Regards,
Adhvi -
Vendor Bill discounting-Urgent
Hi Experts,
I want Vendor Bill discounting steps in IMG & User level T.Codes Also, now i am in implementation projects, i am new to implementation project, plz help me.
Thanks in advance
veeraHi Experts,
plz help me Vendor bill of exchange steps in IMG & User level T.Codes.
Regards
veera -
Vendor Number Range Conflict SAP ECC and CRM 2007
I need to load SAP ECC Vendor data from SAP to CRM and have setup most of the configuration as required. However I have an issue, the vendor number range used currently in our SAP system is already in use in our CRM system and has been for some time (for Prospects and Contacts). What is the best approach to dealing with this issue...
My initial thought was to see if we could have two different numbers for the same vendor in ECC and SAP CRM
eg SAP Vendor "50000001" equates to CRM "VEN50000001"
Is such as approach supported? Can you point me to the documentation that shows how such an approach could be implemented. What approaches have others done to address similar issues?
Thanks in advance
Eddie
By the way we are on CRM 2007 sp4Hi Eddie,
SAP Note 1044637 - Customize Vendor Numbers
Implement the code present in the attachment. You can
change it according to your own requirements. The example code
suffixes 'VEND' before the first six digits of the vendor
number before it is downloaded to CRM.
Thanks,
Vaibhav Shah -
Vendor evalution report in SAP BUSINESS ONE
We require Vendor Evalution report in SAP BUSINESS ONE which has information about receipt(GRPO) perfomance against purchase order issued. We require item code, item description, p.o.no., p.o.qty, delivery date, GRPO NO., GRPO Date, GRPO QTY, Delay no. of days. If there is any report in SAP please inform us. Otherwise any query we can make please inform us how to make query in SAP business one.
Hi,
The query from the thread is modified as below to include the customer/vendor name :
SELECT T3.cardcode, T0.ItemCode, SUM(T0.Quantity) 'PO Qty',SUM(T1.Quantity) 'GRPO Qty', SUM(T2.Quantity) 'Return Qty'
FROM dbo.POR1 T0
LEFT JOIN dbo.PDN1 T1
ON T0.DocEntry = T1.BaseEntry AND T0.LineNum = T1.BaseLine
LEFT JOIN dbo.RPD1 T2
ON T1.DocEntry = T2.BaseEntry AND T1.LineNum = T2.BaseLine
INNER JOIN dbo.OPDN T3
ON T1.DocEntry = T3.docentry
WHERE T0.ItemCode is not NULL AND T0.DocDate >= [%0] AND T0.DocDate <= [%1]
GROUP BY T3.cardcode, T0.ItemCode
Check if this helps.
Please make sure you have a look on the Query Generator and the related books on the SQL query writing before you start creating your own.
Kind Regards,
Jitin
SAP Business One Forum Team -
Hi,
Please any body can give me steps of vendor bill discounting
Thanks and Regards
chiruhi
if u purchase the raw material throw(TC:F-43) from vendor. after the purchase if u pay the amount throw the check u can pay throw house bank .so no need that vendor bill discounting steps. if u r vendor bills recievables all steps will aplicable.
regards
sivareddy -
With holding tax base amount for 1099 vendors with discounted payment term
Hi Friends,
We have a below situation for 1099 vendors,
Some of the 1099 vendors are set-up in the system with payment term with discounts i.e. 2% if paid within 10 days
As per config, system posts with holding tax base amount at the time of posting payment.
With holding tax rate is 0%,
Based on modified net amount calculation
and
Cash discount calculation before w/tax calculation
When we have vendor with input tax, system excludes tax amount at the time of payment but for the with holding tax base calculation amount system does not exclude input tax type.
Which causes difference in 1099 misc vendors
Below is the example of how system calculates the amount.
Invoice $ 1000, payment term 2% if paid within 10 days. Input tax 7.25%
Payment going out=
$1000- $ 72.5(tax 7.25%) = $ 927.5 18.55 [2% discount] = $ 908.95 (payment amount)
With holding base calculation =
$ 1000 100 (2% discount) = $ 900
Difference between payment going out and with holding tax base = 908.98 900 = 8.98
Can some one please tell me how to get rid off this difference?
Moreover, please tell me if its normal to have 1099 vendors with discounted payment term.
Any thoughts on above situation will be helpful
Edited by: Shefford William on Jan 28, 2008 11:36 PMDear All
i am also having the same problem. The example is
Net invoice Value = $ 100,000
Input Tax @ 15% = $ 15,000
Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
On payment the system behavior should be
Debit Vendor invoice Value = $ 115,000
Debit Cash Discount @ 20% = $ 20,000 ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,325 ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
Credit Bank Account = $ 91,675 ( Inv value - Cash Dic - W/H tax that is $ 115,000 - 20,000 - 3325 = 91,675)
However at the time of payment system is calculating tax as follows
Debit Vendor invoice Value = $ 115,000
Debit Cash Discount @ 20% = $ 20,000 ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,220 ( 3.5% of 92,000 the Inv Value - Cash Discount that is $ 115,000 - $23,000. This $ 23,000 is only calculated for W/H tax calculation that is 20% of $ 115,000 )
Credit Bank Account = $ 91,780 ( Inv value - Cash Dis - W/H tax that is $ 115,000 - 20,000 - 3220 = 91,780)
this is not the common practice when using the net base value in the system.
Can any one help me in this regard. I really have been stucked in this problem for many days
Regards
Bilal Athar -
How to automate the process of vendor invoice verificaiton from SAP
My client to scan the Invoice (once it is received from vendor), upload it in SAP, the User will look at the Invoice in SAP and then perform Invoice Verification in MIRO.
The Process mechanics is
1.Plant Manager will receive the Invoice physically by the vendor
2.Plant Manager then will fax the Invoice to a central location/Team
3.It gets scanned and gets uploaded in SAP
4.The Manager/FI folks will looked at this scanned copy and then perform
Inv. Verification.
After this i need to enhance the MIRO screen so that once PO or GR no will be entered,
then corresponding vendor invoice has to be displayed in same screen
Kindly can u give me approach to for the above requirement.
Thanks n regards,
Manjunath
Moderator message: "spec dumping", please work yourself first on your requirement.
Edited by: Thomas Zloch on Nov 22, 2011 12:12 PMany input...........
-
Withholding Tax Report S_P00_07000134 not excluding vendor cash discount
Hi Gurus
I am running withholding tax report S_P00_07000134. The report output has gross endor payment. It is not excluding the cash discount amount in the output.
Can someone please help me as to how can we change the report S_P00_07000134 so that it displays amounts after excluding vendor cash discount?
I appreciate your help.
Thanks,
ShaluHI
please refer the below notes
1304883 1273403
Reg
Madhu M -
Sales revenue is after Trade discount
Hi Gurus,
I have an issue, please guide me,
my sales revenue is after trade discount. that is for example unit price is 100, trade discount is 5 (100-5=95). my client requuirement is to send 95 to sales revenue account. i dont want to show any account to this trade discount 5. i cannot give erl key to net total unless it has any condition type for that. please help me any formula or routine or how to handle this scenario.
any suggestion is highly appreciated,
thanks,
sadaHi,
create a new line for total in the pricing procedure below to the trade discount. i mean give the trade disount above the total line...
So the total will not include the trade discount...
post the total line to the revenue account
reward if helps
Muthu -
Is "OPEN TEXT VENDOR INVOCE MGMT FOR SAP SOLUTIONS" a basis job?
Gurus:
We get a requirement to start a project "OPEN TEXT VENDOR INVOCE MGMT FOR SAP SOLUTIONS".
Is this a basis job or programming job or both?
Please share your experience to help us allocate the resource.
Thanks a lot!This is a package from SAP and majority work would be from functional side aprat fom some basis tasks , please check this.
http://www.opentext.com/2/sol-products/sol-pro-extensions-sap/pro-ll-sap-vim.htm
Thank you,
Shyam -
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.
ThanksHi you can use Vendor discount for this senario,
create the condition record and then upload to SRS
regards
Satish -
Hi experts
please give me solution for how to calculate the cash discount on vendor line items
as per the payment term within 30 days 15% cash discount , if we pay the amount before due date(any day from 1 to 30 days) we will receive the cash discount as per standar system , cash discout =amount percentage/100 (ie 10000015%)
But My requirement is like this
paymant term is within 30days 15% cash diacount
baseline date is 1.12.2011
my payment date is 11.12.2011
i want to calculate cash discount like this Casch sdiscount =10000015/10020/365( 20 days before net due date)
is it possible to calculate the cash discount like this.
please advice me any otherway to do this requirementN Konnipati
your rite we dont have such type of Cash discount in standrad SAP (Day wise ) but can we go for the vendor line item interest calculation with the help of payment term but system calculating the interest after net payment due date but it is not calculate how many days before we paid (day wise)
i have followed this steps OBB8,OB46,OB82,OBAC,define time bsaed terms,OB83, Maintain interest rates for vendor operations(brazil),OBV9 and assigne forms for interest indicator.( in master data fs00 and fk02 interest indicator has been assigned)
can u advice any other steps i want to do for item level interest calculation
regards
marikeri
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