How to Maintain terms of payment in SAP

The accompanying instructional exercise guides you based on the most proficient method to Keep up with conditions of installment in SAP. We are making installment term key CP03 which is appropriate for the two clients and sellers.

Terms of Payment are utilized for merchant and client receipt installments with states of money markdown permitted inside a time of installment, the due date for installment, benchmark date, and so on.

Payment terms: If the payment is made within 14 days – 5% discount, or within 20 days – 2% discount, net due 30 days.

SAP IMG Path: – SPRO >SAP Reference IMG (F5) > Financial accounting > Accounts receivable and accounts payable > Business transactions > Incoming invoices / Credit memos >> Maintain terms of payment
Transaction code: – OBB8

Step 1: – Yo can get the payment term configuration screen by IMG path or by entering t-code OBB8

Click on “New entries” to make new payments terms

Step 2: – In the new entries screen, enter the following fields

Payment terms: Enter four digits payment term key.
Sales text: Enter a short description of the payment term key and the text limit is 30 characters.
Own explanation: This field is used to give a detailed explanation of the payment term key. It will be override the explanation that is automatically generated by the system.
Customer: Select this choice assuming that the installment term is to be utilized for Client accounts (records of sales).
Vendor: Select this choice assuming that the installment term is to be utilized for Seller accounts (debt claims).
Block key: If Select the appropriate block key to block certain activities like payment block, payment clearing, etc.
Select the appropriate baseline date calculation option from the list.
Percentage: Enter the discount percentage rate.
No of Days: Enter the no of days from the baseline date for which the discount percentage rate is valid.
Fixed-rate: If you don’t want to use the baseline date, enter the days of the month that the discount ends.
Explanation: – Definite clarification naturally produced by the framework