Cash Discount Base Amount (SAP Library - Terms of Payment and Cash Discount)

Cash Discount Base Amount

Definition

That part of the invoice amount for which cash discount is granted.

Use

If you do not enter the cash discount amount manually, the system calculates this amount using the cash discount base amount and the percentage rates in the terms of payment. If you want the system to calculate the base amount, you must leave the Disc.base field empty.

The system calculates the cash discount base by totaling the amounts from the fixed asset and G/L account line items liable to cash discount. The line items liable to cash discount are those containing no entry in the field No cash discount. When posting, therefore, you can specify for each fixed asset or G/L account line item whether it is liable to cash discount.

Structure

Cash Discount Base Amount and Tax

For the tax line items, you must specify whether the tax amount is liable to cash discount. You make this specification when you define a company code by setting the indicator Cash disc. base is net value.

If you set this indicator, the system ignores the tax items when determining the cash discount base amount. This applies for example, for France, where the tax amount is not relevant for cash discount.
If you do not set the indicator, the system takes the tax amounts into consideration when calculating the cash discount base amount.

Example

When you post an invoice, you enter the following G/L account line items:

Postings Liable and not Liable to Cash Discount

Account Name	Amount	Without cash discount
Machines	100,000
Freight	1,000	X
Assembly costs	2,000	X
Input tax	14,420

If you specify that the tax is liable to cash discount for the company code, the system calculates the cash discount base amount as being USD 114,420. Otherwise, the cash discount base amount is USD 100,000.

If a document contains several line items for a vendor or customer account, the system calculates the proportional cash discount base amount per line item. The line items in which you have already entered the base amount manually are not considered.