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Chapter 14 ■ Defining FI Accounts Receivable and Accounts Payable
Day Limit: The day limit is optional and is used to specify the date by which
terms of payment are valid. It defines the terms of payment that are date
dependent. One term of payment key can have two terms of payment, but with
different day limits. This allows you to specify a given day of the month to which
you may want the payment terms to apply.
Account Type: Determines whether payment terms relate to customers or
vendors and posts business transactions to appropriate accounts in the system.
Baseline Date: The date to which the terms of payment apply. This is the date
the system uses to determine the invoice due date. If you want the system to
default to a baseline date for payment, you should specify the date to be used.
If you want the system to default to a baseline date during document entry, set the appropriate option
from a choice of three default dates:
• Document date
• Document posting date
• Document entry date
If you do not want the system to default to a baseline date, but rather want to enter a date manually
during document entry, use the No Default option.
The Payment Terms section of the screen is where you set the actual payment
terms and conditions for your payment terms key. This includes installment
payment, percentage rates for your payment terms, and the days they apply to.
■■Note
it is advisable to use separate terms of payment for vendors and customers. Changes may occur in
customer payment terms that aren’t relevant to your payment agreements with vendors.
Maintaining Terms of Payment (Customer)
Problem: Company C900 Plc offers discounts to a customer using the following terms of
payment:
• 5% for immediate payment
• 2% for payment made within 15 days
• No discount for payment in 30 days
As an FI consultant, you need to these terms of payment in the system.
To maintain terms of payment for customer, follow this menu path: IMG: Financial Accounting (New)
➤ Account Receivable and Accounts Payable ➤ Business Transaction ➤ Outgoing Invoices/Credit Memos
➤ Maintain Terms of Payment. Or use the transaction code OBB8. The Change View “Terms of Payment”:
Overview screen appears. Click the
button at the top of the screen. The New Entries: Details of
Added Entries screen appears, which is where you customize your terms of payment settings (Figure 14-10).
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