Payment Terms Configuration

Accounts Receivables / Accounts Payables

• Terms of payment are conditions agreed upon between business partners for the payment of invoices.
• The conditions define the due date and the cash discount offered for payment of the invoice within a certain period.
• Some terms of payment are predefined in the system; you can add new ones if necessary.
• Terms of payment enable the system to calculate a cash discount and invoice due date.
• Payment terms control the determination of the baseline date, allowed account type, and default payment method.
• Transaction code: OBB8
• Menu path:
  Display IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Incoming Invoices/Credit Memos → Maintain Terms of Payment
• Menu path:
  Display IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Invoices/Credit Memos → Maintain Terms of Payment

Payment Terms for Credit Memos

Invoice-Related Credit Memos

• Credit memos can be linked to the original invoice by entering the invoice number in the “Invoice Reference” field during document entry.
• In this case, the terms of payment are copied from the invoice so that the invoice and the credit memo are due on the same date.

Other Credit Memos

• Terms of payment in other credit memos are invalid. These credit memos are due on the baseline date.
• To activate the payment terms on these non-invoice-related credit memos, enter “V” as the alphabet in the “Invoice Reference” field when entering the document.

Cash Discount — Configuration

Accounts Receivable

• Define accounts for cash discount granted (expense account).
• Transaction code: OBXI
• Menu path:
  Display IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Payments → Outgoing Payments Global Settings → Define Accounts for Cash Discount Taken

Accounts Payable

• Define accounts for cash discount taken (revenue account).
• Transaction code: OBXU
• Menu path:
  Display IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Incoming Payments → Incoming Payments Global Settings → Define Accounts for Cash Discount Granted