When posting a vendor invoice, you use the document type to specify whether you want to use the vendor net procedure for recording the invoice. With the vendor net procedure for posting, the system automatically separates the offsetting entries into net amount and any cash discount available at the time of posting these entries. The vendor net procedure is used to post vendor invoices to assets. The exact acquisition amount, less any cash discount, is then posted to asset accounts.

During document entry, you must inform the system that you want to use the net posting procedure. To do this, you specify a document type that is defined as a net document type. Document type KN has already been defined for the net posting procedure in the standard system.

To set up your own net document type, you need to define it as such by choosing Net document type in Customizing. In addition, make sure that the required account types are specified in the Account types field. In the standard system, these are G/L accounts, asset accounts, and vendor accounts. The vendor net procedure cannot be used when posting to customer accounts.