How do you configure terms of payments in SAP FICO?

 You configure terms of payment in SAP FICO through transaction code OBB8 or by following the path : SPRO

Exercise:

U001 – 10 DAYS No Default

U002 – 10 DAYS Document Date

U003 – 10 DAYS Posting Date

U004 – 10 DAYS Entry Date

1. Maintenance Of Terms Of Payment

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on "New entries"

Payment terms =

Account type:                                                        ----------------------------------------------------------

Select "Vendor" Check Box                                  l  If we want to use same payment terms for both

Select "Customer" Check Box                               l  Vendor and Customer select both check boxes

Default Baseline Date:                                            ----------------------------------------------------------

Select "No Default" Check Box

Payment Terms:


Sales Text =

Click on Save

2. Maintenance Of Terms Of Payment

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on "New entries"

Payment terms =

Account type:

Select "Vendor" Check Box

Select "Customer" Check Box

Default Baseline Date:

Select "Document Date" Check Box

Payment Terms:


Sales Text =

Click on Save

2. Maintenance Of Terms Of Payment

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on "New entries"

Payment terms =

Account type:

Select "Vendor" Check Box

Select "Customer" Check Box

Default Baseline Date:

Select "Posting Date" Check Box

Payment Terms:


Sales Text =

Click on Save

3. Maintenance Of Terms Of Payment

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on "New entries"

Payment terms =

Account type:

Select "Vendor" Check Box

Select "Customer" Check Box

Default Baseline Date:

Select "Entry Date" Check Box

Payment Terms:


Sales Text =

Click on Save

‘---------------------------------------------------------------------------------------------

RM Consumption A/c Dr 100

To Vendor A/c () Cr 100

Post 4 Entries with 4 payment terms and understand the difference in due date

‘---------------------------------------------------------------------------------------------

5. Posting Vendor Invoice

Path SAP Menu->Accounting->Financial Accounting->Accounts

Payable->Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                             Press Enter

Vendor =                                                                         Invoice Date =

Amount =

Text =

Click on Payment Tab

Payment Terms =

Items

G/L A/c =                                                                                 Amount =

Text =+

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Save

6. Check Vendor Line Item Report -TC -FBL1N

Vendor account =

Company code =

Select "open items"

Open at key date =

Click on "execute”

Note: Net Due date column

                                                    --------- end of exercise------------

                                        Payment Terms - Cash Discount

Process Steps: TC

1. Maintenance Of Terms Of Payment OBB8

2. Creation of G/L Account - "Cash discount" FS00

3. Assignment of Cash Discount A/c for Automatic Postings OBXU

4. Purchase Invoice Posting FB60

5. Check Vendor Line Item Report FBL1N

6. Outgoing Payment F-53

‘-------------------------------------------------------------------------------------------

1. Vendor Invoice Accounting

RM Inventory A/c Dr 1000

To Vendor Cr 1000

2. Paying in 10 days / 10% , 20 days/ 5 % , 30 days / 0

Vendor A/c Dr 1000

To Cash/bank A/c Cr

To Cash Discount A/c Cr

‘-------------------------------------------------------------------------------------------

1. Maintenance Of Terms Of Payment

PATH IMG-->Financial Accounting-->Accounts Receivable and Accounts

Payable-->Business Transactions-->Incoming Invoices/Credit

Memos-->Maintain Terms of Payment

Tcode OBB8

Click "New entries"

Payment terms =

Sales Text = 10 days-10%; 20 days-5%; 30 days due

Account type:

Select "Vendor" checkbox

Select "Customer" checkbox

Default Baseline Date:

Select " Document Date" checkbox

Payment terms:

Click on Save

3. Define Tolerances (Vendors)

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Outgoing Payments-->Manual Outgoing Payments-->Define Tolerances (Vendors)

Tcode OBA3

Click on Position

Company Code =                                                                 Press Enter

Double click on “Company Code”

Grace Days =

Display Terms =

Arrears Base Date =

Click on Save

2. Create G/L Account - "Cash discount" - TC – FS00

3. Assignment of Cash Discount A/c for Automatic Postings - TC -OBXU

4. Purchase Invoice Posting

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable- >Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                                     Press Enter

Vendor =                                                                                 Invoice Date =

Amount =

Text =

Click on Payment Tab

Payment Terms =

ITEMS

G/L A/c =                                                                             Amount =

Text =+                                                                             Press Enter

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Save

5. Check Vendor Line Item Report

Path Accounting → Financial Accoun􀆟ng → Accounts Payable → Account → FBL1N - Display/Change Line Items

Tcode FBL1N

Vendor account =

Company code =

Select "Open items" Radio Button

Click on "execute” and observe the Document Status.

Add “Current Cash Discount Amount” Column In Layout To See The Discount Amount

6. Outgoing Payment

Path Accounting → Financial Accoun􀆟ng → Account Payable → Document Entry

→ Outgoing Payment → Post. Select the Document Date

Tcode F-53

Document date =                                                                 Company Code =

Posting date =

Bank Data:

Account =

Amount =

Text =

Open Item Selection:

Account = (Vendor Account Number)

Click on “Process Open items” button

Observe that “Not Assigned ” balance should be equal to ZERO.

Click on Document – Simulate

Double Click on Blue Color line item and Enter Text.

Click on “Display Document Overview Button”

Click on Save

                                Fixed Installment Payment Terms

1. Create 4 Payment Terms

PATH IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

1.1. Create “Y004” Payment Terms

Click on New Entries

Payment Terms

Sales Text & Own Explanation =

Select Customer & Vendor check Box

Select “Document Date” Radio Button for Baseline Date

Select Installment Check Box

Click on Save and Back

1.2. Create “Y001” Payment Terms

Click on New Entries

Payment Terms =

Sales Text & Own Explanation =

Select Customer & Vendor check Box

Select “Document Date” Radio Button for Baseline Date

Term 1 – No of Days =

Click on Save and Back

1.3. Create “Y002” Payment Terms

Click on New Entries

Payment Terms =

Sales & Own Explanation =

Select Customer & Vendor check Box

Select “Document Date” Radio Button for Baseline Date

Term 1 – No of Days =

Click on Save and Back

1.4. Create “Y003” Payment Terms

Click on New Entries

Payment Terms =

Sales & Own Explanation =

Select Customer & Vendor check Box

Select “Document Date” Radio Button for Baseline Date

Term 1 – No of Days =

Click on Save and Back Twice

2. Define Terms of Payment for Installment Payments

PATH IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos--> Define Terms of Payment for Installment Payments

Tcode OBB9

Click on New Entries

Terms of Payment Inst Percent Payment Terms

                                1

                                2

                                3

Click on Save

3. Update Payment Terms in Vendor Master – BP

‘-------------------------------------------------------------------------------------------

Computer Asset A/g Dr 45000

To Vendor A/c Cr 45000

‘-------------------------------------------------------------------------------------------

Create Computer GL Account – FS00

4. Purchase Invoice Posting

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable-

>Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                             Press Enter

Vendor =                                                                         Invoice Date =

Amount =

Text =

Click on Payment Tab

Payment Terms =

ITEMS

G/L A/c = Amount =

Text =+                                                                                 Press Enter

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Save

5. Check Vendor Line Item Report

Path Accounting → Financial Accoun􀆟ng → Accounts Payable → Account → FBL1N - Display/Change Line Items

Tcode FBL1N

Vendor account =

Company code =

Select "Open items" Radio Button

Click on "execute” and observe the Document Status.

                                    Flexible Installment Payment Terms

If you have Fixed Installments, you can use the Installment payment terms as we did in previous case. However, if you need to change the amounts, it requires additional customizing.

‘-------------------------------------------------------------------------------------------

Computer Asset A/g Dr 45000

                To Vendor A/c Cr 20000

                To Vendor A/c Cr 30000

                To Vendor A/c Cr 25000

                To Vendor A/c Cr 25000

‘-------------------------------------------------------------------------------------------

1. Enable Amount Split in the Company code

Path IMG-->Financial Accounting-->Financial Accounting Global Settings-- >Company Code-->Enter Global Parameters

Tcode OBY6

Click on Position Button

Company Code =                                                                 Press Enter

Double Click on Company Code

Select “Enable Amount Split” Check Box

Click on Save

‘---------------------------------------------------------------------------------------------

 Amount split enables the split of an invoice or credit memo final amount.

 A new Tab Amount split will appear on the screens of the Enjoy transactions (i.e

FB60, MIRO).

 This method does not work for the old transactions Code FB01

‘------------------------------------------------------------------------------------------

2. Posting Vendor Invoice

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable- >Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                         Press Enter

Vendor =                                                         Invoice Date =

Amount =

Click on Payment Tab

Items

G/L A/c =                                                         Amount =

Text =+

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Back button and Press Enter

Click on Amount Split Tab

Amount                         Pymt Method                                 Paymt.Terms


Click on Simulate Button

Click on 

3. Check Vendor Line Item Report

Path Accounting → Financial Accoun􀆟ng → Accounts Payable → Account → FBL1N - Display/Change Line Items

Tcode FBL1N

Vendor account =

Company code =

Select "open items" checkbox

Open at key date =

Click on "execute”

Check the due date of installments

                                                Day Limit in Payment Terms

Scenario:

 1 to 15 Transactions are paid on 20th of the same month

 16 to 31 Transactions are paid on next month’s 5th

1. Define Payment Terms for Day Limit ( 1 to 15 Days)

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on New Entries

Payment Terms =

Sales Text & Own Explanation =

 Customer & Vendor check Box

Fixed Day =

Day Limit =

Additional Months =

Select “Posting Date”

Click on Save

2. Define Payment Terms for Day Limit ( 16 to 31Days)

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on New Entries

Payment Terms =

Sales Text & Own Explanation =

Select Customer & Vendor check Box

Fixed Day =

Day Limit =

Additional Months =

Select “Posting Date”

Click on Save

3. Update Payment Terms in Vendor Master – BP

4. Post Vendor Invoice ( 1 to 15 Days)

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable-

>Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                                     Press Enter

Vendor =                                                                             Invoice Date =

Amount =

Click on Payment Tab

Payment Terms =                                                                     Press Enter

ITEMS

G/L A/c = Amount =

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Save

5. Post Vendor Invoice – ( 16 to 31Days)

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable->Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                                 Press Enter

Vendor =                                                                     Invoice Date =

Amount =

Click on Payment Tab

Payment Terms =                                                             Press Enter

ITEMS

G/L A/c =                                                                     Amount =

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on Save

4. Check Vendor Line Item Report

Path Accounting → Financial Accounting → Accounts Payable → Account → FBL1N - Display/Change Line Items

Tcode FBL1N

Vendor account =

Company code =

Select "open items"

Open at key date =

Click on "execute”

Check the due date of installments

                                        Fixed Baseline Date in Payment Terms

Scenario: All Transaction of the month will be paid on 10 of next month. Example

JAN 10th Feb

FEB 10th Mar

MAR 10th Apr

APR 10th May

6. Define Payment Terms for Fixed base line

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Business Transactions-->Incoming Invoices/Credit Memos-->Maintain Terms of Payment

Tcode OBB8

Click on New Entries

Payment Terms =

Sales Text & Own Explanation =

Select Customer & Vendor check Box

Fixed Day =

Additional Months =

Select “Posting Date”

Click on Save

7. Post Vendor Invoice

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable- >Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code =                                                                         Press Enter

Vendor =                                                                                     Invoice Date =

Amount =

Click on Payment Tab

Payment Terms =                                                                                Press Enter

ITEMS

G/L A/c =                                                                                         Amount =

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on /Save

                                        Payment Block

Payment block means blocking the invoice for payment

Note: We can update payment block after posting vendor invoice from FB02 or Line Item Report FBL1N.

1. Define Payment Block Reasons OR use predefined by SAP

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable- ->Business Transactions-->Outgoing Payments-->Outgoing Payments Global Settings-->Payment Block Reasons-->Define Payment Block Reason

Tcode OB27

Block Indicator =

Description =                                                                         Click on Save

2. Define Payment Terms for Fixed baseline

Path IMG-->Financial Accounting-->Accounts Receivable and Accounts

Payable-->Business Transactions-->Incoming Invoices/Credit Memos-

->Maintain Terms of Payment

Tcode OBB8

Click on New Entries

Payment Terms =

Day Limit =

Sales Text & Own Explanation =

Select Customer & Vendor check Box

Select “Posting Date”

Click on Save

‘-------------------------------------------------------------------------------------------

Computer Asset A/g Dr 1000

To Vendor A/c Cr 1000

‘--------------------------------------------------

Vendor A/c Dr 1000

To bank A/c Cr 950

To Cash Discount Cr 50

‘-------------------------------------------------------------------------------------------

3. Post Vendor Invoice

Path SAP Menu->Accounting->Financial Accounting->Accounts Payable-

>Document Entry->Invoice

Tcode FB60

Change Company Code:

Edit - Change Company Code

Company Code = Press Enter

Vendor = Invoice Date =

Amount =

Click on Payment Tab

Payment Terms = Press Enter

ITEMS

G/L A/c = Amount =

Ensure that balance Field should be equal to ZERO

Click on Simulate Button

Click on /Save

4. Post Outgoing payment - F-53

5. Remove Block from Document from FB02 / FBL1N

6. Post Outgoing payment - F-53

-------------------------------------End of Cash Terms--------------------------------












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