When configuring the payment program you can always set up one of the following strategies for outgoing payments:
· Make payments with the highest possible cash discount.
· Make payments as late as possible even if this means losing cash discount.
· Make payments according to a strategy which is somewhere between these two extremes.
If the highest possible cash discount is desired, flag the field Max. Cash Discount: see Company Code Specifications: Diagram The payment program applies cash discount term 1 to these open items.
If you have specified a minimum percentage rate (see Company Code Specifications: Diagram, Outgoing payment with cash discount from),the payment program settles items only if the discount percentage rate entered can be reached in the current payment run. If not, payment is made when the amount is due net. If you wish to make payment as late as possible, enter 99 percent as the minimum percentage rate (during payment program configuration). This determines that payments are always made net.
You can also use the minimum percentage rate to define strategies that lie between the two extremes (maximum discount or due net).