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Payment terms

In standard SAP system, billing documents are generated, against which customer makes payment to the business unit. However, on the basis of our relationship with our customer we may extend certain credit period to him.

For example, we may allow our customer to pay back to us within 30 days from the time of goods/service delivery to him. Alternately, we may allow him to pay back in monthly installment on a certain date of every month. We may also provide him a certain discount if he pays back to us within the stipulated time frame.

In SAP, this functionality can be controlled using payment terms. We will review that how we may control payment due date calculation using payment terms and what are the constraints in using the same.

Payment due date calculation

Payment due date is function of two different variables configured in SAP. First is baseline date and other is payment terms.

We may represent the relationship among these variables as below:

Payment due date = Baseline Date + Payment terms

For example, if baseline date for a particular payment term is billing date (for example 28th May) of the document and payment term is 21 days, then payment due date will be calculated as 18th Jun ( 28th May+21 Days).

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Baseline Date:

There are four options available in transaction OBB8 (Customizing for payment terms) for configuring the baseline date:

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Now let’s understand, what does each of this mean-

1) No default – There is no date is set as default; we need to enter the baseline date manually in the billing document.

2) Document date – This is the billing date in the invoice. For delivery related billing, it is copied from the actual goods issue date and for order related billing it flows from sales order billing date.

3) Posting date – It is the posting date of the accounting document. It may be different from the invoice entry date in the system.

For example, you received an invoice from 27.05.2012 but current system date is 02.06.2012 and accounting period for May is closed in FI, so we will post this invoice in June posting period as posting date as 02.06.2012. In this case the document date will be 27.05.2012 and posting date 02.06.2012.

4) Entry date- This date corresponds to the date when billing document is created in the system. There is a possibility that goods issue has been posted in the system but invoice is not created for a week. So when we create the invoice, its creation date will be the entry date and billing date will be flown from delivery document as actual goods issue date.

The flow of billing date information happened in SD-FI interface from invoice document to accounting document.

A very important note:

From ECC version 4.6, SAP has revoked the functionality to use any date, as mentioned above, for baseline date. Now standard SAP considers billing date (document date) as the baseline date by default irrespective of the settings mentioned in the OBB8.

ECC V 4.6 onwards, the standard the billing date (VBRK-FKDAT) is set as baseline date

in FI. With note #180344 following coding has been introduced:

[1]FORM CLEAR_TERMS_OF_PAYMENT (LV60BF0C)

form clear_terms_of_payment.

  clear: xaccit-zterm,

xaccit-zbd1t,

xaccit-zbd1p,

xaccit-zbd2t,

xaccit-zbd2p,

xaccit-zbd3t.

  1. endform.                               ” CLEAR_TERMS_OF_PAYMENT

It means that only the base line date is taken over from SD to FI and the payment terms will not be copied anymore.

Please refer to OSS note 180344 for more details on this change.

Information flow in SD-FI interface

When accounting document is posted for an invoice, baseline date and payment terms are passed on to FI from SD. The data in FI gets stored in table BSEG in the following fields:

BSEG-ZFBDT

BSEG-ZTERM

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Payment due date can be calculated by calling any standard functional module such as:

J_1A_SD_CI_DUEDATE_CHECK

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Importing parameters are:

IV_VBELN: Billing document number

IV_ZTERM: Payment term

IV_RATNR: Sequential Number of Installment to be Paid (Applicable when payment terms                    is installment relevant)

It will return EV_NETDATE, which is net due date.


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