cash discount configuration

8/13/2019 Cash Discount Configuration

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issue of the invoice, he would be entitled to the cash discount as mentioned in the paymentterms.

Cash Discount process in SAP:

In SAP the following steps would be involved in the entire cash discount cycle:

The cash discount terms are configured in the terms of payment. General Ledger account would have to be assigned for posting the cash discount. The terms of payment configured above are assigned to the customer master. Invoice is posted against the customer when sales are made to the customer. The terms of

payment maintained in the customer master would default to the invoices from the customermaster. If the defaulted terms of payment needs to be changed another terms of payment canalso be manually entered in the invoice.

If the payment is received from the customer within the date till which the customer can avail cashdiscount as per the terms of payment, the customer would be entitled to cash discounts.


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Step 1:

SAP Configuration - Maintain Terms of Payment:

Description Transaction Code
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87876/SAP+Cash+Discount+Flow.png


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Maintain Terms ofPayment OBB8

As per the contractual agreement between a vendor and customer, the terms of payment wouldhave to be configured in SAP.

For example, the screen shot above shows the details of the payment term 0002.

The parameters of the payment term mean that the customer is entitled to a 2% discountif the payment is made within 14 days of the baseline date.
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87897/Terms+of+Payment1.PNG


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If the payment is being made after 14 days from the baseline date then full payment isexpected.

As per the terms of payment the document date is defaulted as the baseline date whichcan be modified. If the defaulted date is not modified while entering the customer invoicethe document date will be the baseline date.

Step 2:

SAP Configuration - Define Accounts for Cash DiscountGranted:


Define Accounts for Cash DiscountGranted OBXI

In SAP, the standard transaction key SKT is used to determine accounts or posting keys for lineitems which are created automatically by the system for Cash Discounts granted.

In this configuration step the G/L account number to which the automatic posting for the cashdiscount is to be made is assigned.
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87898/Automatic+Posting+Configuration.png


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Step 3:

Master Data maintenance - Assigning terms of payment inthe customer master:

Description Transaction Code Create/change Customer master FD01/FD02/XD01/XD02

Payment terms - maintained in the company code segment of the customer master
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87905/Customer+Master.png


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Payment terms - maintained in the sales area segment of the customer master.

The terms of payment can be maintained in the customer master. If the terms of payment aremaintained in the customer master, while entering an invoice against that customer, the terms of

payment maintained in the customer master will default to the invoice. Like the baseline date, theterms of payment can also be modified while entering the invoice, if required.

The terms of payment can be maintained in the company code segment as well as the sales areasegment as shown in the screen shots above.

Step 4:

Transactional data 1 - for illustrating the cash discountprocess:
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87906/Customer+Master+Sales+Area.png


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Invoice is posted against the customer when sales are made:


Enter Customer Invoice FB70

An invoice is posted against the customer with document date 19 th October 2011.

When the invoice is posted against the customer upon the sales being made, the terms of payment maintained in the customer master in Step 3 gets automatically defaulted to the invoiceas shown below.

As per the terms of payment maintained in the customer master, the document date of the invoiceis defaulted as the baseline date.
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87890/Invoice.PNG


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The document date of the Invoice posted is 19 th of October 2011, and hence the baseline date forthe invoice is also 19 th of October 2011.

So as per the terms of payment if the payment is made within 14 days from the baseline date, thecustomer would be entitled to 2% cash discount.

Both the terms of payment as well as the baseline date defaulted while entering the invoice can be modified, if required.

Step 5:

Transactional data 2 - for illustrating the cash discountprocess:

Payment is received from the customer within 14 days from the baseline date:
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87891/Invoice+Baseline+date.PNG


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Description Transaction Code Post Incoming Payments F-28

When the payment is received from the customer on 19 th of October 2011 (i.e. before the expiryof 14 days from the baseline date), the customer is entitled to 2% discount. This cash discount of2% is automatically calculated and proposed while the incoming payment is being entered.

This 2% discount is automatically posted to the General ledger account 4040010, assigned/configuredin the transaction OBXI above.
http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87892/Incoming+Payments.PNG


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http://scn.sap.com/servlet/JiveServlet/showImage/102-25959-2-87896/Posted+Document+with+Discount.PNG

cash discount configuration

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