- Terms of Payment Basics Purchase Order Placed on 1* January Goods Received on 5* January Lakai tia thinset Rekeniatss Vendor invoice Date is 5 January Days After Verification ,Invoice Posted in SAP on 10° January but entered on 11° January by AP ‘Accountant ci Cee Document Date 05.01.2019 10 15.01.2019 Posting Date 10.01.2019 10 20.01.2018 Entry Date 11.01.2019 10 21.01.2019 Steps : U001 = 10 DAYS No Default U002 = 10 DAYS Document Date (U003 = 10 DAYS Posting Date 'U004 - 10 DAYS Entry Date 1. Maintenance Of Terms Of Payment - TC - OBB8 IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- No Default >Business Transactions-->Incoming Invoices/Credit Memos-~>Maintain Terms of Payment Click on “New entries" Payment terms = Account type: If we want to use same payment terms for both Select "Vendor" Check Box Vendor and Customer select both check boxesSelect "Customer" Check Box Default Baseline Date: Select "No Default" Check Box Payment Terms: Term % No of Days 1 10 Sales Text = Click on Save 2. Maintenance Of Terms Of Payment - TC - OBB8 ---- Document Date IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment Click on "New entries" Payment terms = Account type: Select "Vendor" Check Box Select "Customer" Check Box Default Baseline Date: Select "Document Date" Check Box Payment Terms: If we want to use same payment terms for both Vendor and Customer select both check boxes Term % No of Days 1 10Sales Text = Click on Save 3. Maintenance Of Terms Of Payment — TC - OBB8---- Posting Date IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment Click on "New entries” Payment terms = Account type: Select "Vendor" Check Box Select "Customer" Check Box Default Baseline Date Select "Posting Date" Check Box Payment Terms: If we want to use same payment terms for both Vendor and Customer select both check boxes Term % | No of Days 1 10 Sales Text = Click on Save 4. Maintenance Of Terms Of Payment - TC - OBB8 ---- Entry Date IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of PaymentClick on "New entries" Payment terms = Aecount type: If we want to use same payment terms for both Select "Vendor" Check Box Vendor and Customer select both check boxes Select "Customer" Check Box Default Baseline Date: Select "Entry Date" Check Box Payment Terms: Term % No of Days 1 10 Sales Text = Click on Save 400000 RM Consumption A/c = Dr_~—:100 To Vendor A/c (400000) Cr 100 Post 4 Entries 5. Posting Vendor Invoice — FB60 SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice Change Company Code: Edit - Change Company Code Company Code = Press EnterVendor = Amount = Text = Click on Payment Tab Payment Terms = Items G/L A/c = Text =+ Business Area = Ensure that balance Field should be equal to ZERO Click on Simulate Button Click on Save to Post 6. Check Vendor Line Item Report -TC -FBLIN Vendor account Company code - Select "open items" Open at key date Click on “execute” Note: Net Due date column Invoice Date Amount =Payment Terms - Cash Discount Process Steps: Te 1. Maintenance Of Terms Of Payment OBB8 2. Creation of G/L Account - "Cash discount" FS00 3, Assignment of Cash Discount A/c for Automatic Postings OBXU 4, Purchase Invoice Posting F-43 5. Purchase Invoice Posting /NF-43 6 Check Vendor Line item Report FBLIN 7. Outgoing Payment F-53 1. Vendor Invoice Accounting RM Inventory A/c Dr 1000 To Vendor Cr 1000 2. Paying with in 10 days and getting 5% Cash Discount Vendor A/c Dr 1000 To Cash/bank A/c cr 950 To Cash Discount A/c Cr 50 1. Maintenance Of Terms Of Payment - TC — OBB8 IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment, Click "New entries" Payment terms = Sales Text = 10 days-10%; 20 days-5%; 30 days dueAccount typ If we want to use same payment terms for both Select "Vendor" Check Box Vendor and Customer select both check boxes Select "Customer" Check Box Default Baseline Date: Select "Document Date" Check Box Payment terms: Term Percentage No. of days 1 10 10 2 ¥ 20 nists ae Ss Click on Save 2. Creation of G/L Account - "Cash discount" - TC = FS00 Path: Accounting — Financial Accounting — General Ledger Master Records — Individual Processing Centrally Check up the list of Account Groups and identify Account Group under which we have to create this GL Master and choose the GL Account Number - - TC- OBD4 GL Account Number = 300102 Company Code = Click on “With Template Button” GL Account Number = 300000 Company Code = Press Enter Change Account Group = Other Income Change Short / Long Text = Cash Discount Received Click on Save3. Assignment of Cash Discount A/c for Automatic Postings - TC -OBXU IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Outgoing Payments-->Outgoing Payments Global Settings-->Define Accounts for Cash Discount Taken Chart of Accounts = Press Enter & Save Account Number = Click on Save 4, Purchase Invoice Posting - - TC - FB60 SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry- Invoice Change Company Code: Edit - Change Company Code Company Code = Press Enter Vendor = Invoice Date = Amount = Text = Click on Payment Tab Payment Terms = ITEMS G/LA/c = Amount = Text Business Area = Press Enter Ensure that balance Field should be equal to ZERO Click on Simulate Button Click on Save to Post Document date _ Type = Company Code=Posting date = Currency = Posting key = Account (Vendor) = Press Enter Amount 3 Business area = Payment Terms = Baseline Date = Text = Posting key = Account = Press Enter Amount -* Business area = Text =+ Click on “Overview” Icon and “Save” to post it. Double Click on Error Message” Cash discount May only be granted upto 0%" Click on Customization Button Click on “Continue w/o Specifying a Project” Double Click on first line “Define Tolerance Groups for Employees” Click on Execute ‘Define Tolerance Groups for Employees” Click on Position Button Tolerance Group = Company Code = Press Enter Double click on Company Code line Enter Maximum Cash Discount % in Cash discount perlineitem = =5 Click on Save & Enter Go Back to FB60 Screen, need to start the entry from scratch. Post 3 Entries for Testing Purpose.5. Check Vendor Line Item Report -TC- FBLIN Vendor account Company code = Select "open items" Radio Button Select “Normal items” Check Box Click on “execute” and observe the Document Status. Add “Current Cash Discount Amount” Column In Layout To See The Discount Amount 6. Outgoing Payment - - TC - F-53 Document date Type = Company Code = Posting date = Currency = Bank Data: Account = Business Area= Amount - Text = Open Item Selection: Account = (Vendor Account Number) Click on “Process Open items” button Observe that “Not Assigned " balance should be equal to ZERO. Click on Document — Simulate Double Click on Blue Color line item and Enter Text, Click on “Display Document Overview Button” Click on Save to PostFixed Installment Payment Terms co Y004 ~ a aN aN Yoo1 Yoo2 Yoo3 ee Ss aed Due on 15 Days Due on 30 Days Due on 45 Days 30% 30% 40% Mobile Price 1000 DownPayment O installment 30% 300 Ast 30% 300 and 40% 400 ard 1. Create 4 Payment Terms - OBB8 IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment 1.1.Create “Y004" Payment Terms Click on New Entries Payment Terms = Sales Text & Own Explanation Select Customer & Vendor check Box Select “Document Date” Radio Button for Baseline Date Select Installment Check Box Click on Save and Back1.2. Create “Y001” Payment Terms Click on New Entries Payment Terms = Sales Text & Own Explanation Select Customer & Vendor check Box Select “Document Date” Radio Button for Baseline Date Term 1=NoofDays = Click on Save and Back 1.3. Create “Y002" Payment Terms Click on New Entries Payment Terms - Sales & Own Explanation = Select Customer & Vendor check Box Select “Document Date” Radio Button for Baseline Date Term1=NoofDays = Click on Save and Back 1.4, Create “Y003" Payment Terms Click on New Entries Payment Terms = Sales & Own Explanation = Select Customer & Vendor check Box Select “Document Date” Radio Button for Baseline Date Term1=No of Days = Click on Save and Back Twice - Define Terms of Payment for Installment Payments -TC - OBB9 Click on New Entries Terms of Payment Inst Percent Payment Terms 1 2Click on Save 3. Update Payment Terms in Vendor Master - TC - XK0Z Vendor - Company Code 4 Company Code Data Select “Payment Transactions” Press Enter Payment Terms = Click on Save 4. Posting Vendor Invoice - FB60 SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice Change Company Code: Edit - Change Company Code Company Code = Press Enter Vendor = Invoice Date = Amount Text Click on Payment Tab Payment Method c Items G/L A/c - Amount = Text =+ Business Area Ensure that balance Field should be equal to ZERO Click on Simulate ButtonClick on Save to Post Flexible Installment Payment Terms If you have Fixed Installments, you can use the Installment payment terms as we did in previous case. However, if you need to change the amounts, it requires additional customizing. 1. Enable Amount Split in the Company code -TC - OBY6 IMG-->Financial Accounting-->Financial Accounting Global Settings-->Company Code- ->Enter Global Parameters Click on Position Button Company Code - Press Enter Double Click on Company Code Select “Enable Amount Split" Check Box Click on Save = Amount split enables the split of an invoice or credit memo final amount. = Anew Tab Amount split will appear on the screens of the Enjoy transactions (i.e FB60, MIRO). = This method does not work for the old transactions Code FBO1 2, Posting Vendor Invoice - FB60 SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice Change Company Code: Edit - Change Company Code Company Code = Press EnterVendor = Invoice Date = Amount = Text = Click on Payment Tab Payment Method =Cc Items G/LA/c = Amount = Text =+ Business Area = Ensure that balance Field should be equal to ZERO Click on Simulate Button Click on Back button and Press Enter Click on Amount Split Tab Amount Pymt Method Paymt.Terms Click on Simulate Button Click on Save to Post 3. Check Vendor Line Item Report -TC -FBLIN Vendor account ~ Company code = Select "open items” Open at key date Click on “execute” Check the due date of installmentsDay Limit in Payment Terms Scenario: = 1to 15 Transactions are paid on 20" of the same month = 15 to 31 Transactions are paid on next month's 5" We fos Y010 Y010 nN See” From 1 To 15 Days From 16 To 31 Days 1. Define Payment Terms for Day Limit (1 to 15 Days) - TC - OBB IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment Click on New Entries Payment Terms = Sales Text & Own Explanation = Select Customer & Vendor check Box Fixed Day - Day Limit = Additional Months = Select “Document Date” Radio Button for Baseline Date Click on Save2. Define Payment Terms for Day Limit ( 16 to 31Days) - TC - OBB8 IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment Click on New Entries Payment Terms = Sales Text & Own Explanation = Select Customer & Vendor check Box Fixed Day = Day Limit = Additional Months = Select "Document Date” Radio Button for Baseline Date Click on Save 3. Update Payment Terms in Vendor Master - TC - XKO2 Vendor = Company Code = Company Code Data Select “Payment Transactions” Press Enter Payment Terms = Click on Save 4. Post Vendor Invoice - TC -FB60 (1 to 15 Days) SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice Change Company Code: Edit - Change Company Code Company Code = Press EnterVendor = Invoice Date = Amount = Text = Click on Payment Tab Payment Terms = Press Enter ITEMS. G/LAVe = Amount = Text Business Area = Ensure that balance Field should be equal to ZERO Click on Simulate Button Click on Save to Post 5. Post Vendor Invoice - TC -FB60 (16 to 31Days) SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice Change Company Code: Edit - Change Company Code Company Code = Press Enter Vendor = Invoice Date = Amount = Text - Click on Payment Tab Payment Terms - Press Enter ITEMS G/L A/c - ‘Amount = Text “+Business Area = Ensure that balance Field should be equal to ZERO Click on Simulate Button Click on Save to Post Fixed Baseline Date in Payment Terms Scenario: All Transaction of the month will be paid on 10 of next month. Example JAN 10" Feb FEB 10" Mar MAR 10" Apr APR 10" May 6. Define Payment Terms for Fixed base line - TC - OBB8 IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment Click on New Entries Payment Terms = 20 Sales Text & Own Explanation = Select Customer & Vendor check Box Fixed Day - Additional Months = Select “Posting Date” Radio Button for Baseline Date Click on Save 7. Post Vendor Invoice -FB60 ‘SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice