Creation of GL master - Cash discount received

Creation of GL master (Use t-code FS00)
Cash discount received under other income account group

Step 1) Give the G/L account number, company code and press With Template button in order to create a new G/L account with reference to another G/L account

 Step 2) Enter the G/L we created previously (Exchange gain) and company code

Step 3) Change short and long text
Other fields are common

Step 4) Select save button  we get message below

How to Maintain Terms of Payment

Terms of Payment

Path: SPRO - Select SAP reference IMG - Financial Accounting - Accounts Receivable and Accounts Payable - Business Transactions - Incoming Invoices/Credit Memos - Maintain Terms of Payment (Transaction code is OBB8)

In the SAP Reference IMG select the menu path

Step 1) Select New Entries button

Step 2) Select Customer and Vendor Check box under Account type
Select Posting date (Goods receipt date) radio button under Baseline date calculation
Payment terms :-
If payment is made within 10 days 3% cash discount
If payment is made within 20 days 2% cash discount

Press Enter to see the Explanations

Step 3) Select the save button we get a message below

Purchase Invoice Posting

Purchase Invoice Posting (Use t-code F-43)

NORMAL TERM	DATE	IN SAP
Party bill date	20.03.2018	Document date
Goods receipt date	25.03.2018	Posting date
Party bill date	29.03.2018	Quality Approval date

Step 1) Populate the following fields: Document Date, Type, Company Code, Posting Date, Period, Currency and Posting key
Select the Vendor from the drop down button and press enter

Step 2) Populate the following fields: Amount, Business Area, Payment Terms, Text

Press enter we see message below

Days/Percent shows up

                                       

Ignore the message press enter
Give Posting key and Account
Press Enter

Step 3) Populate the following fields: Amount, Business Area and Text in the next screen

Step 4) From the menu select document and press simulate to view the document details

Step 5) Select the save button we get a message below

How to View Discount Received

Discount Received (Use t-code FS10N)

Step 1) Give the GL account (cash discount received), Company code and Fiscal year

Execute

Step 2) Double click amount 3000/- under the Cumulative balance column

Step 3) GL account is displayed
Double click to view document

Step 4) Select document overview button in the next screen

We now see data entry view

Terms of Payment In SAP

Terms of Payment

Terms of payment refers to the conditions set by the vendor for payment purpose in order to receive payment early. If payment is made within certain conditions set by vendor deduction is allowed i.e cash discount percentages based on payment due dates.
Example:
a. Cash discount of say 3% is allowed if payment is made within 10 days
b. Cash discount of say 2% is allowed if payment is made within 20 days

Configuration of  Terms of  Payment

1. Maintain Terms of Payment

2. Creation of GL Master - Cash discount received under other income group

3. Assignment of Accounts for Automatic Postings

End User Area

1. Purchase Invoice Posting

2. Display Vendor Account Transaction

3. Outgoing Payment with Clearing

4. How to View Discount Received

Outgoing Payment with Clearing

Outgoing Payment with Clearing (Use t-code F - 53)

Step 1) Populate the following fields : Document Date, Type, Company Code, Reference, Clearing text, Account under Bank data, Business Area, Amount, Text, Account under open item selection and Account type
Select Process open items button

Step 2) Double click amount 100000/-
Cash discount changes to red
Amount entered and assigned should be same

Step 3) From the menu select Document - Simulate
Double click the blue font line item

 Populate the Text field

Step 4) Select the save button we get a message below

Assignment of Account for Automatic Postings

Assignment of Account for Automatic Postings

Path: SPRO - Select SAP reference IMG - Financial Accounting - Accounts Receivable and Accounts Payable - Business Transactions - Outgoing Payments Global Settings - Define Accounts for Cash Discount Taken  (Transaction code is OBXU)

Step 1) Give Chart of Accounts
Press Enter

Step 2) Select the save button

Step 3) Give the account number (Cash discount received)

Step 4) Select the save buttonwe get a message below

Display Vendor Account Transaction

Displaying Vendor Account Transaction (Use t-code FBL1N)

Step 1) Give Vendor account number and Company code
Select Open Items radio button
Select Normal Items check box
Execute



Step 2) Here we see the Purchase order
To view the discount in current period click change layout button

Step 3) Click the find iconand type current
Press enter

Step 4) Select the current cash discount amount and press the left arrow button (show selected fields button)



Step 5) We now find current cash discount amount under column content
Select current cash discount
Click Copy button

Current cash discount is added to the layout