Update more about payment configuration. Today is a queue of payment term. Payment term configuration is seem like easy but it's not. There are many factors and condition in SAP configuration. I hope this help everyone who is looking for the manual.
What is Term of Payment in SAP
Term of payment is a key for system to determine due date of invoices. SAP has 3 key words about payment which are baseline date, due date and payment term. Below solution is how system determine due date.
Due Date = Baseline Date + Payment Term
Normally, baseline date should be the same as invoice date. In SAP, system applies field document date as invoice date. It’s mean that you have to enter date of invoice document in document date and posting date should be current date. This may make you confuse. Let’s me explain from example below.
Example
Vendor issue invoice and submit to your office on 20 February 2015. Date in invoice is 20 February 2015 as well. Your officers are very busy and not be able to post invoice document in system until 26 February 2015. On 26 February 2015, your officers have to post invoice with:
Document Date = 20.02.2015
Posting Date = 26.02.2015
In this document, baseline date will be automatically fill-in as document date which is 20.02.2015.
Where Term of Payment is used in SAP
Term of payment is especially use in financial document such as vendor invoice, customer billing. But there are more 2 modules that able to post financial document and related to term of payment which are SD (sale and distribution) and MM (material management). System posts billing document in SD and generate financial document in the same time. MM also post invoice document form (MIRO transaction) and generate financial document as well. It’s mean that vendor invoice and customer billing can be post from both FI and SD or MM. So, system is designed to allow user to enter term of payment since you create sale order/purchase order. Moreover, SAP make it’s more easy by allow you to default term of payment in vendor/customer master data. So, when you create sale order/purchase order or even you post direct financial posting related to vendor/customer, system automatically default term of payment from vendor/customer master.
***Even term of payment is entered since master data or sale order/purchase order, you still able to change term of payment in financial document and make it different from sale/purchase order.***
How to configure term of payment in SAP
Menu Path: SPRO -> Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Business Transactions -> Incoming Invoices/Credit Memos -> Maintain Terms of Payment
T-Code: OBB8
1. Create new term of payment in SAP
2. Enter detail of term of payment
This is the characteristic of payment term. How you need system to calculate due date is depended on setting here.
Day Limit
Day Limit is day of the month up until which the corresponding terms are valid. In 1 term of payment, you can define different day limit. The terms of payment key is expanded by the day limit entered here. Thus there are two entries in which different terms can be specified. You can see usage of this in example <3.2>.
Account Type
You have to select whether you need payment term to apply for customer or vendor. SAP allows you to select both customer and vendor for 1 payment term. It’s mean that you can use 1 payment term for both vendor and customer.
Baseline Date Calculation
SAP allows you to default baseline date with calculation.
Fixed Date: It’s a date that you need to fix for baseline date.
Additional Months: It’s a month that you need to fix for baseline date.
Example
Payment Method Z030 is set as below:
Fixed Date = 15
Additional Month = 1
You are posting document with invoice date = 27.02.2015 with payment method “Z030”. Your baseline date will be default as “15.03.2015”. Day “15” come from fix date and month “03” come from 02 + additional month 01 in configuration.
Payment Block / Payment Method Default
You can default payment block and payment method based on payment term.
Check box behind block key and payment method is an indicator to transfer block key and payment method. If you select this function, block key and payment method will be transferred after you change payment term.
Example
Document 2100000000 is posted with payment term “Z000”. “Z000” is not set block key and payment method. Then, you change payment term from “Z000” to “Z030”. Payment Term “Z030” is set to default block key “A” and payment method “T”. After you change payment term, system automatically change block key to “A” and payment method to “T”. But if this function is not selected, block key and payment method will be not updated.
Payment Terms
Percentage = percentage of cash discount if invoice is cleared within due date.
No. of Days = Number of day which system will determine due date.
Fixed date = Fix due date (date)
Additional Month = Fix due date (month)
Example
1. You need to create new payment term which due date should be 30 days after invoice.
No. of Days = 30
Fixed date = N/A
Additional Month = N/A
2. You need to create new payment term which due date should be on 15 of next month after invoice date.
No. of Days = N/A
Fixed date = 15
Additional Month = 1
3. You need to create new payment term which invoice date 1-15 due on 15 of next month and invoice date 16-31 due on 31 of next month.
In this case, you have to create 1 payment method with 2 day limits.
3.1 You create payment method “Z030” with day limit 15.
We create this payment method with day limit 15 for document which invoice date is within 1-15. Calculation of this payment method is immediately but we change baseline date to 15 of next month. It's mean that net due date will be 15 of next month.
3.2 You create payment method “Z030” with day limit 30.
We create this payment method with day limit 31 for document which invoice date is within 16-31. Calculation of this payment method is immediately but we change baseline date to 31 of next month. It's mean that net due date will be 31 of next month.
Invoice that invoice date is with 1-15 will be calculate due date based on <3.1>. But if invoice date is within 16-31, system calculates due date based on <3.2>.
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