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Maintain Terms of Payment

In the step Maintain terms of payment, you can define rules with which the system can determine the required terms of payment automatically. The rules are stored under a four-character key. You assign the terms of payment specified to the vendors in the master record via the key. The key and the terms determined with it are proposed when entering a document to the vendor account.

Note

You can specify a key in the master data area for Financial Accounting and Sales + Distribution. You should use the same key.

You can use the same key for the terms of payment for both customers and vendors who have the same payment terms. SAP recommends, however, that you use different terms of payment keys for customers and vendors and limit the permitted account type correspondingly within the terms of payment. This, for example, then has an advantage if the sales department of your company changes a payment term for a customer. You can then adapt the accompanying customer terms of payment key without vendors being affected by the same terms of payment.

Standard settings

The most usual terms of payment have already been set in the standard system. These include specifications on the payment conditions, the day limit or the payment period baseline date, for example.

Recommendation

You do not normally have to make any additions or changes to the default settings, unless you want to:

• Enter a separate help text for a payment term which deviates from the explanations created automatically

• Exclude an account type for a payment term (in the standard system, a payment term applies to all account types of the business partner)

• Change the payment conditions for a payment term

• Indicate that it has to do with a holdback/retainage payment

Activities