## Cash Discount Strategy

### Use

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).