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Chapter 14 ■ Defining FI Accounts Receivable and Accounts Payable
■■Note
you can create as many number range intervals as desired. The amount of number ranges you define
depends on your company’s requirements.
Assign Number Ranges to Vendor Account Groups
To complete the vendor account groups’ setup, you have to assign number ranges to them. Follow this menu
path: IMG: Financial Accounting (New) ➤ Accounts Receivable and Accounts Payable ➤ Vendor Accounts
➤ Master Data ➤ Preparations for Creating Vendor Master Data ➤ Assign Number Ranges to Vendor
Account Groups. Or use transaction code OBAS. The Change View Assign Vendor Account Groups – Number
Range Overview screen, containing a list of existing number ranges, is displayed. Search for the vendor
account group called dv10-domestic vendor by using the Scroll button or by clicking the
button
at the bottom of the screen. Assign the number range 03 to the domestic vendor account group account.
Likewise, search for your foreign vendor account group and assign the number range 04 to the foreign
vendor account group. Save your number range assignments.
Terms of Payment
It is a normal business practice for business partners to enter into some form of payment agreement that
governs their business relationship regarding invoice payment and cash discounts awards. This type of
agreement is referred to as the terms of payment. Terms of payment refer to conditions with business
partners for goods sold or services offered in relation to how payments are made. The terms of payment
define invoice due dates and cash discounts offered within a specified period. For example, your company
might agree to offer a discount of 5% to business partners A and B if they pay an outstanding invoiced
amount within five days, a 2% discount when paid within 10 days, and so on, as depicted in Figure 14-9.
Business
Partner A
Business
Partner B
Agreed-Upon
Trade Terms
Discount
Awarded
Business partners agree to payment terms on invoice payment.
If agreed-upon conditions are fulfilled, a discount is awarded
Figure 14-9. Terms of payment flow.
The terms of payment you define during configuration are assigned to the business partner’s master
record. When you assign the terms of payment key (this is a freely definable four-character field that holds
the terms of payment that the system uses to calculate discounts) to a business partner’s master record, the
system will automatically default to the terms of payment during document entry. Otherwise, the user has to
enter the terms of payment key manually when entering the document in the system. SAP also comes with a
pre-defined standard terms of payment. You can perform the following specifications:
Payment Terms: This is a four-digit character key that determines how a
discount is granted. Payment terms are expressed as a percentage rate that
determines the cash discount granted or received. Payment terms are defined for
both customers and vendors and they become valid during document entry. We
recommend that you define separate payment terms for customers and vendors
because changes in customer payment terms may not apply to vendors.
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