Notification of Payment Terms 

Use

When you place a subcontract order with a subcontractor that is covered by the Subcontracting (Shitauke) Act, you are required to confirm the terms of payment with the subcontractor in writing. The details include, for example:

·         The payment due date

·         The payment method

·         The subcontractor’s bank

You can prepare a letter of notification using the Notification of Payment Terms report. To access it, in the Subcontracting with Chargeable Components area menu, choose Reports  ® Notification of Payment Terms.

Prerequisites

The report reads the payment method from the Customizing settings for the terms of payment. You must therefore enter a default payment method in Customizing for Financial Accounting (FI), by choosing Accounts Receivable and Accounts Payable  ® Business Transactions  ® Outgoing Invoices/Credit Memos  ® Maintain Terms of Payment.

The report also reads the subcontractor’s bank’s name from the bank’s Customizing settings. You can maintain the bank’s name in Customizing for FI, by choosing Bank Accounting  ® Bank Accounts  ® Define House Banks.

Features

Output

The report displays a list of each subcontractor’s payment terms. Select the subcontractors that you want to notify, and choose  Output.