Configure SAP Payment Terms

SAP payment terms function as determiner of when a receivable from customer and a payable from vendor is due for collection/due for payment. Moreover, it function also as determiner when is a discount availed/granted and how much is the discount.

The default payment term of an individual customer or vendor can be maintained in the master record. The maintained payment term in the customer/vendor master record is the default payment term during posting of invoices. The default payment term can be changed during transaction entry, if a different payment term is more appropriate.

Some companies using SAP have complex payment terms.

Scenario example:

Invoices posted on or before the 25th of the current month should be payable on the 25th of the following month. And, invoices posted after the 25th of the current month should be payable on the 25th of the NEXT NEXT month.

To explain the scenario above, an invoice has issued on August 24, 2009. The payment due date should be on September 25, 2009. Another invoice has issued on August 26, 2009, the payment due date should be on October 25, 2009.

To cater the payment term in the above scenarios example, just follow this simple procedure.

Path: SPRO → Financial Accounting (New) → Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Invoices/Credit Memos → Maintain Terms of Payment.

Transaction code: OBB8

You need to create 1 payment term with different day limit (25, 31).

1. Day limit 25, additional months 1

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