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Background documentation Down Payments and Cash Discount  Locate the document in its SAP Library structure

Generally, you do not post cash discount for down payments. Consequently, you can suppress these fields via the down payment accounts for the down payment entry screen. To do this, you enter a field status group in the master record via which the cash discount fields are suppressed. For more information on the layout of the screens, refer to the section "G/L account master data" in FI - General Ledger Accounting.

If your cash discount applies to certain down payments, you do not make any entries in the cash discount fields on the screen. The following example describes the procedure for posting cash discount with the gross procedure.


You agree on a down payment of 11,400 USD with your vendor, with 3% cash discount (USD 342). So that the payment program can post the down payment automatically, you have entered a down payment request. You have entered the cash discount percentage rate in the request.

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The down payment is posted as follows:

  1. The payment program posts a down payment of 11,400 USD to the vendor account and to the special G/L account.
  2. Since you have agreed on a cash discount, the payment program only posts 11,058 USD to the bank account. The amount is reduced by the cash discount (300 USD) and the tax part of the cash discount (42 USD).
  3. The payment program also posts the tax amounts and the cash discount automatically. In doing this, it reduces the cash discount by the tax amount (42 USD). Since you are dealing with a down payment displayed gross, the system also posts the input tax amount of 1,400 USD to an input tax clearing account.

When transferring the down payment, the down payment is cleared in the vendor account and the special G/L account. The system posts the amount (11,400 USD in the example) as an incoming payment to the vendor and reconciliation accounts. The input tax postings are canceled by an offsetting entry (1,400 USD in the example).