Vendor Payment Term

[Former Member]

Hi All,

How to configure the following Vendor Payment term?

Business requirement:

We require vendor payment term with multiple cash discount days option. Standard SAP provides 2 discount days option, but we require more than 20 discount options within one payment term.

Following is the example of a payment term, which requires multiple discount options as shown.

Payment Date Baseline = Vendor Invoice Date

1% 10 days Net 30 days from date of invoice

0.95% 11 days Net 30 days from date of invoice

0.90% 12 days Net 30 days from date of invoice

0.85% 13 days Net 30 days from date of invoice

0.80% 14 days Net 30 days from date of invoice

0.75% 15 days Net 30 days from date of invoice

0.70% 16 days Net 30 days from date of invoice

0.65% 17 days Net 30 days from date of invoice

0.60% 18 days Net 30 days from date of invoice

0.55% 19 days Net 30 days from date of invoice

0.50% 20 days Net 30 days from date of invoice

0.45% 21 days Net 30 days from date of invoice

0.40% 22 days Net 30 days from date of invoice

0.35% 23 days Net 30 days from date of invoice

0.30% 24 days Net 30 days from date of invoice

0.25% 25 days Net 30 days from date of invoice

0.20% 26 days Net 30 days from date of invoice

0.15% 27 days Net 30 days from date of invoice

0.10% 28 days Net 30 days from date of invoice

0.05% 29 days Net 30 days from date of invoice

Net 30 days from date of invoice

Best Regards,

Siva

[Former Member]

Hello Siva,

I am not sure I understand your business requirement. Do you want to have the ability to have one payment term with multiple discount options? From what I am seeing, each one of the discount options would be setup separately as a payment term.

[Former Member]

Hi,

This is one single payment term.

Example: Material "ABCD" - Qty 1 EA @ USD100 is ordered and received from vendor. In the PO, this payment term is mentioned. Hence the discount offered by the vendor is based on when the payment is made.

If payment is made on the 30th day from the date of invoice, it is due net. For each day prior to 30, the discount increases. Hence the earlier the payment is made the higher the discount.

If the invoice date is 01-Sep-07, the following table shows the discount based on payment date:

Discount % Payment Date Discount Amount

1.00 % 10 Days from Invoice date 10-Sep-07 1.00

0.95 % 11 Days from Invoice date 11-Sep-07 0.95

0.90 % 12 Days from Invoice date 12-Sep-07 0.90

0.85 % 13 Days from Invoice date 13-Sep-07 0.85

0.80 % 14 Days from Invoice date 14-Sep-07 0.80

0.75 % 15 Days from Invoice date 15-Sep-07 0.75

0.70 % 16 Days from Invoice date 16-Sep-07 0.70

0.65 % 17 Days from Invoice date 17-Sep-07 0.65

0.60 % 18 Days from Invoice date 18-Sep-07 0.60

0.55 % 19 Days from Invoice date 19-Sep-07 0.55

0.50 % 20 Days from Invoice date 20-Sep-07 0.50

0.45 % 21 Days from Invoice date 21-Sep-07 0.45

0.40 % 22 Days from Invoice date 22-Sep-07 0.40

0.35 % 23 Days from Invoice date 23-Sep-07 0.35

0.30 % 24 Days from Invoice date 24-Sep-07 0.30

0.25 % 25 Days from Invoice date 25-Sep-07 0.25

0.20 % 26 Days from Invoice date 26-Sep-07 0.20

0.15 % 27 Days from Invoice date 27-Sep-07 0.15

0.10 % 28 Days from Invoice date 28-Sep-07 0.10

0.05 % 29 Days from Invoice date 29-Sep-07 0.05

(0.00) % 30 Days from Invoice date 30-Sep-07 (0.00)

Best Regards,

Siva

[Former Member]

Hi,

Can anyone help me on this please? Your valued input will be appreciated very much.

Best Regards,

Siva