The following tutorial guides you how to Maintain terms of payment in SAP. We are creating payment term key CP03 which is applicable for both customers and vendors.
Payment terms: If the payment is made with in 14 days – 5% discount, or with in 20 days – 2% discount, net due 30 days.
SAP IMG Path: – SPRO >SAP Reference IMG (F5) > Financial accounting > Accounts receivable and accounts payable > Business transactions > Incoming invoices / Credit memos >> Maintain terms of payment
Transaction code: – OBB8
Step 1: – Yo can get the payment term configuration screen by IMG path or by entering t-code OBB8
Click on “New entries” to create new payment terms
Step 2: – In new entries screen, enter the following fields
1. Payment terms: Enter four digits payment term key.
2. Sales text: Enter a short description of payment term key and text limit is 30 characters.
3. Own explanation: This field is used to give a detail explanation of payment term key. It will be override the explanation that is automatically generated by the system.
4. Customer: Select this option if the payment term to be used for Customer accounts (accounts receivable).
5. Vendor: Select this option if the payment term to be used for Vendor accounts (accounts receivable).
6. Block key: If Select appropriate block key to block certain activities like payment block, payment clearing etc.
7. Select appropriate base line date calculation option from the list.
8. Percentage: Enter the discount percentage rate.
9. No of Days: Enter the no of days from base line date for which the discount percentage rate is valid.
10. Fixed rate: If you don’t want to use base line date, enter the days of month that the discount ends.
11. Explanation: – Detailed explanation automatically generated by the system
Select save button to save the configured data. Successfully we have maintained terms of payment for vendors and customers.