INSTALLMENTS PAYMENT – Payment Terms & Document Split
Suman Sardar
September 27, 2012 7 minute read
INSTALLMENTS PAYMENT – Payment Terms & Document Split
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In SAP we can make payments to Vendor or Receive payments fro Customer in installments.Below is the SAP standard configuration to do this;
We have two alternatives
1. Use installment payment terms
2. Activate document split
1. Installment payments
Instead of entering several line items, you only enter the data for one item. The breakdown is carried out by the system automatically by means of the payment terms.
Configuration
IMG Menu Financial Accounting ® Accounts Receivable and Accounts Payable ®Business Transactions ® Incoming invoices/Credit Memos ® Maintain
Terms of Payment
Transaction Code OBB8
You need to create four payment terms. First you create the ‘main term’ for the Installment. Here R001. This payment term is set to vendor
master.
The Installments need also payments terms.Here you set the day limits for payments. In IMG activity Define Terms of Payment for Installment payments you
define the percentages and assign the Installment payment to the ‘main term’.
1.1 Create ‘main term’
Press New entries
Field name Description
Payment terms R001
Sales Text Inst. pymnt terms 3 part. amnt
Account type: Customer Selected
Account type: Vendor Selected
Default for baseline date: Document Date
Payment terms: Installment payment Selected
Choose Save.
Choose Back.
1.2 Create ‘Installment terms’
Press ‘New entries’
Field name Description Description Description
Payment terms ZR01 ZR02 ZR03
Sales Text 1st installment 2nd installment 3rd installment
R001 (15 days) R001 (30 days) R001 (45 days)
Account type: Customer Selected Selected Selected
Account type: Vendor Selected Selected Selected
Default for baseline date Document Date Document Date Document Date
Payment terms: Installment payment Not selected Not selected Not selected
Payment terms: No. of days 15 30 45
Choose Save.
Choose Back
1.3 Define Installments
IMG Menu Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Incoming invoices/Credit Memos ® Define
Terms of Payment for Installment payments
Transaction Code OBB9
Select New entries and enter definitions for payment term R001. Enter the percentages and payment terms for the Installments (ZR01-ZR03).
Define your partial amounts in percent for each terms of payment key affected. Make sure that you number the individual partial amounts consecutively.
1.4 Enter the new payment term in the vendor master.
Ensure that the key is entered in the vendor master record which represents the specified terms of payment.
1.5 Test how the payment term works
Create Vendor Invoice where we find the Installment as Split line item in the Simulation.
Simulate the posting
We can see that the invoice is divided in three Installments with their own due dates.
2 Amount split
If you have fixed Installments, you can use the Installment payment terms. However,if you need to change the amounts, this is not a good solution. Any change in Installment payment terms or invoice plans requires additional customizing. There is a way to use flexible amounts in the Installments. Enable Amount Split in the company code customizing.
Amount split enables the split of an invoice or credit memo final amount. A new tab Amount split will appear on the screens of the Enjoy transactions (FB60, MIRO). This method does not work for the old style transactions such as FB01.)
2.1 Test the amount split
Create a new invoice for vendor 200 (payment terms R001 in vendor master).
Open tab Amount split.
You can split the amount according to payment method or terms of payment. If you have entered a payment method, this entry has priority over the payment method in the terms of payment.
If no split is made – Installments according to payment term.
Make following split: 15000 is paid immediately (payment term 0001) and the rest with payment term ZR02.
Simulate the document
3 Customer Invoice Installment
The same way Customer Billing document account will Split using the Payment Term configuration.
This is one of the important features of Payment Term configuration.
Regards,
Suman Sardar
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55 Comments
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Former Member
September 28, 2012 at 4:48 am
Good one.
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Shihab MS
September 28, 2012 at 5:20 am
HI Friend
Good work.
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Varkey George
September 28, 2012 at 6:53 am
Very informative & useful.
Thanks
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Former Member
October 18, 2012 at 5:28 pm
good work
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Suman Sardar
Blog Post Author
October 18, 2012 at 5:45 pm
Thanks to all for all the appreciation.....
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Fabio Pifferini
January 16, 2013 at 7:34 pm
Hello! I'm facing a problem with the Swiss currency. We don't work with cents but we round the amount like this: 0.05, 0.10, 0.15 and so on. When the sum is splinted with a certain percentage I get also not rounded partial payments (lets say partial payment = 36.66). Is the solution in the transaction DIF to find?
Thank you. The guideline was so far great!
Fabio
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Former Member
July 22, 2013 at 10:06 am
may be you can use tolerence group
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Former Member
January 25, 2013 at 9:42 am
Hi Suman,
Very well documented!
Please continue with the good work.
Thanks and regards,
G. Ajit Kumar
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Mariks .
June 27, 2013 at 1:37 pm
Excelent work done...keep it up...thank you for sharing knowledge...
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Suman Sardar
Blog Post Author
June 27, 2013 at 7:12 pm
Thanks for your appreciation ....
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Former Member
July 22, 2013 at 10:05 am
Thanks for documentation, it is helpful and clarify many thing.
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Suman Sardar
Blog Post Author
July 22, 2013 at 10:50 am
Thanks for the comments Hatem...
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Former Member
July 24, 2013 at 5:11 am
Very informative & useful.
Thanks
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Suman Sardar
Blog Post Author
July 24, 2013 at 5:30 am
Thanks Ratnam for the comment.
Thanks,
Suman$
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Former Member
August 1, 2013 at 5:39 am
Very informative..awaiting for the next post.
Thanks a lot
Dinesh
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Suman Sardar
Blog Post Author
August 1, 2013 at 9:10 am
Thanks for the comment.
Ya will have to plan for the next post.
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Prasad Tatikonda
August 1, 2013 at 10:08 am
Hi Suman,
Well done with good examples.
Regards,
prasad
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Former Member
August 1, 2013 at 10:20 am
Good one.
Thanks
Naresh K.
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Suman Sardar
Blog Post Author
August 8, 2013 at 5:45 am
Thank you Naresh K.
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Former Member
August 6, 2013 at 1:10 pm
hi suman
good work suman keep going..
Thanks & Regards
dhanaprabu
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Suman Sardar
Blog Post Author
August 8, 2013 at 5:46 am
Thanks for appreciating.. dhanaprabu
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Muthukumareshan vijayan
August 8, 2013 at 2:03 am
Hi Suman,
Very informative & useful me thanks.
Thanks
Muthu
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Suman Sardar
Blog Post Author
August 8, 2013 at 5:45 am
Thanks for the comment Muthu
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Devavrat Salvekar
August 8, 2013 at 6:25 am
really a good document.
Thanks & Regards,
Dev
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Suman Sardar
Blog Post Author
August 12, 2013 at 4:07 pm
Thanks Dev
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Erico Mattos
August 12, 2013 at 2:08 pm
Thanks for share Suman Sardar
Nice!
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Suman Sardar
Blog Post Author
August 12, 2013 at 4:07 pm
Thank You Erico Mattos
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Former Member
August 23, 2013 at 4:48 pm
Very Nice.
Thank you for share it.
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Suman Sardar
Blog Post Author
August 24, 2013 at 11:44 am
Thanks Jandoval for your appreciation.
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Former Member
August 27, 2013 at 3:32 pm
Suman,
Thanks for sharing, very informative and in details. Excellent.
Arvind
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Suman Sardar
Blog Post Author
August 29, 2013 at 9:21 am
Hi Arvind,
Thanks for the comment...
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Former Member
September 18, 2013 at 5:20 am
very useful suman. Appreciations
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Suman Sardar
Blog Post Author
September 18, 2013 at 6:03 am
thank you Gautam
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Former Member
September 18, 2013 at 10:57 am
Hi Suman
Congratulation, great job.
Best Regards.
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Suman Sardar
Blog Post Author
October 13, 2013 at 6:36 am
Thanks for the complement.
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Srinu S
October 13, 2013 at 6:30 am
Hi Suman,
Very well documented. Useful document. Keep sharing.
Thanks for sharing.
Srinu.
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Suman Sardar
Blog Post Author
October 13, 2013 at 6:37 am
Thank you for the Appreciation
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Lakshmi Sama
January 2, 2014 at 7:31 am
Hello Suman,
It is more informative and very well explained. Thanks for sharing your knowledge and keep sharing
Thanks & Regards,
Lakshmi S
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Former Member
January 5, 2014 at 5:22 am
Nice....One dear.Missed out to publish same document...good one.
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Former Member
January 8, 2014 at 4:57 am
Thank you very very much
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Former Member
January 25, 2014 at 4:23 pm
wow so well explained..thank u sir...i could understand this in one go...thank u
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Suman Sardar
Blog Post Author
January 27, 2014 at 4:15 pm
...
