In the apps for invoice entry, the payment terms and the baseline date for payment are displayed on the Payment tab and can be changed here. You can also specify a fixed cash discount amount on this tab. In the Create Supplier Invoice - Advanced app (transaction MIRO), the payment terms and the baseline date are also displayed in the Basic Data.
You can also exclude specific items from the cash discount by selecting the No Cash Discount checkbox for the relevant item.
The system uses the following logic to determine the terms of payment when an invoice is entered with purchase order reference. The following rules apply to all transactions: invoice, credit memo, subsequent debit, and subsequent credit.
| Item Type | Terms of Payment Proposal |
|---|---|
| Terms of payment are suggested from the first PO that was specified in the allocation. A warning message displays if the terms of payment for individual POs are different. This proposal also applies when the partner role invoicing party is used in the PO or when the invoicing party is changed during the invoice entry. |
| Terms of payment are suggested from the company code data of the supplier that is planned for the delivery costs. |
The following rules apply when the terms of payment are determined for invoices without purchase order reference.
| Transaction | Terms of Payment Proposal |
|---|---|
| Terms of payment for invoices from the company code data of the invoicing party that is to be entered manually. |
| Terms of payment for credit memos from the company code data of the invoicing party that is to be entered manually. |
Hint
Methods of Posting Cash Discount Amount
There are two ways to post the cash discount amount: Gross posting and net posting.
- Posting gross:
When you post the invoice, the cash discount amount is not taken into account; it is only posted to a Cash Discount account when the payment is made. Therefore, the cash discount amount is not credited to the stock or cost account.
- Posting net:
When you post the incoming invoice, the cash discount amount is posted from a cash discount clearing account to the stock account or cost account. This means that the system posts only the amount reduced by the cash discount amount to the stock account/cost account. The cash discount clearing account is cleared at the time of payment.
Whether an invoice is posted as gross or net depends on the document type of the accounting document. A unique specification is made for each document type that specifies whether the postings are gross or net.
In Customizing, you define a default value for the document type of the accounting document. This default value can be changed during invoice entry. To change the document type of the accounting document in the Create Supplier Invoice app, click More on the General Information tab to display the Details. In the Enter Incoming Invoice (MIRO), Park Invoice (MIR7), Enter Invoice for Invoice Verification in Background (MIRA), and the corresponding apps, you find the document type in the header data on the Details tab page.
Account Movements with Gross Posting
The cash discount amount is not taken into account when the invoice is posted gross. The cash discount amount is not posted until payment:
- The cash discount amount for the net invoice value is posted at the time of payment as a non-operating result.
- When the invoice is posted, the system posts the tax amount without taking the discount into account. If the payment is made in the discount period, the system re-calculates the tax amount, and the difference is credited to the input tax account.
Account Movements with Net Posting
The cash discount amount is already taken into account when the invoice is net posted. The cash discount amount is posted to a cash discount clearing account, which is cleared at the time of payment.
The offsetting posting to the cash discount clearing account depends on the following price control of the material:
- If the material is managed with a standard price, the cash discount is credited to the price difference account.
- If the material is managed with an MAP and there is adequate stock coverage, the cash discount is credited to the stock account. If there is inadequate stock coverage, only the part for which stock coverage exists is posted to the stock account. The system posts the remainder to the price difference account. If there is zero stock coverage, the entire amount is posted to the price difference account.
When the payment is made, the input tax posted in the invoice is corrected.
Customizing Terms of Payment
To define terms of payment, use the following Customizing paths:
- In Customizing for Financial Accounting, choose Accounts Receivable and Accounts Payable → Business Transactions → Incoming Invoices/Credit Memos → Maintain Terms of Payment(OBB8).
- In Customizing for Financial Accounting, choose Accounts Receivable and Accounts Payable → Business Transactions → Incoming Invoices/Credit Memos → Define Terms of Payment for Installment Payments(OBB9).
Customizing Document Types for Accounting Documents
To define and change document types for accounting documents, in Customizing for Materials Management , choose Logistics Invoice Verification → Incoming Invoice → Number Assignment → Maintain Number Assignments for Accounting Documents (OMR4).
In this activity you also determine which document type the system is to suggest for the accounting document when a transaction is called.