INSTALLMENTS PAYMENT – Payment Terms & Document Split

Suman Sardar

September 27, 2012 7 minute read

556659,890

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.

Like 0

Shihab MS

September 28, 2012 at 5:20 am

HI Friend

Good work.

Like 0

Varkey George

September 28, 2012 at 6:53 am

Very informative & useful.

Thanks

Like 0

Former Member

October 18, 2012 at 5:28 pm

good work

Like 0

Suman Sardar

Blog Post Author

October 18, 2012 at 5:45 pm

Thanks to all for all the appreciation.....

Like 0

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

Like 0

Former Member

July 22, 2013 at 10:06 am

may be you can use tolerence group

Like 0

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

Like 0

Mariks .

June 27, 2013 at 1:37 pm

Excelent work done...keep it up...thank you for sharing knowledge...

Like 0

Suman Sardar

Blog Post Author

June 27, 2013 at 7:12 pm

Thanks for your appreciation ....

Like 0

Former Member

July 22, 2013 at 10:05 am

Thanks for documentation, it is helpful and clarify many thing.

Like 0

Suman Sardar

Blog Post Author

July 22, 2013 at 10:50 am

Thanks for the comments Hatem...

Like 0

Former Member

July 24, 2013 at 5:11 am

Very informative & useful.

Thanks

Like 0

Suman Sardar

Blog Post Author

July 24, 2013 at 5:30 am

Thanks Ratnam for the comment.

Thanks,

Suman$

Like 0

Former Member

August 1, 2013 at 5:39 am

Very informative..awaiting for the next post.

Thanks a lot

Dinesh

Like 0

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.

Like 0

Prasad Tatikonda

August 1, 2013 at 10:08 am

Hi Suman,

Well done with good examples.

Regards,

prasad

Like 0

Former Member

August 1, 2013 at 10:20 am

Good one.

Thanks

Naresh K.

Like 0

Suman Sardar

Blog Post Author

August 8, 2013 at 5:45 am

Thank you Naresh K.

Like 0

Former Member

August 6, 2013 at 1:10 pm

hi suman

good work suman keep going..

Thanks & Regards

dhanaprabu

Like 0

Suman Sardar

Blog Post Author

August 8, 2013 at 5:46 am

Thanks for appreciating.. dhanaprabu

Like 0

Muthukumareshan vijayan

August 8, 2013 at 2:03 am

Hi Suman,

Very informative & useful me thanks.

Thanks

Muthu

Like 0

Suman Sardar

Blog Post Author

August 8, 2013 at 5:45 am

Thanks for the comment Muthu

Like 0

Devavrat Salvekar

August 8, 2013 at 6:25 am

really a good document.

Thanks & Regards,

Dev

Like 0

Suman Sardar

Blog Post Author

August 12, 2013 at 4:07 pm

Thanks Dev

Like 0

Erico Mattos

August 12, 2013 at 2:08 pm

Thanks for share Suman Sardar

Nice!

Like 0

Suman Sardar

Blog Post Author

August 12, 2013 at 4:07 pm

Thank You Erico Mattos

Like 0

Former Member

August 23, 2013 at 4:48 pm

Very Nice.

Thank you for share it.

Like 0

Suman Sardar

Blog Post Author

August 24, 2013 at 11:44 am

Thanks Jandoval for your appreciation.

Like 0

Former Member

August 27, 2013 at 3:32 pm

Suman,

Thanks for sharing, very informative and in details. Excellent.

Arvind

Like 0

Suman Sardar

Blog Post Author

August 29, 2013 at 9:21 am

Hi Arvind,

Thanks for the comment...

Like 0

Former Member

September 18, 2013 at 5:20 am

very useful suman. Appreciations

Like 0

Suman Sardar

Blog Post Author

September 18, 2013 at 6:03 am

thank you Gautam

Like 0

Former Member

September 18, 2013 at 10:57 am

Hi Suman

Congratulation, great job.

Best Regards.

Like 0

Suman Sardar

Blog Post Author

October 13, 2013 at 6:36 am

Thanks for the complement.

Like 0

Srinu S

October 13, 2013 at 6:30 am

Hi Suman,

Very well documented. Useful document. Keep sharing.

Thanks for sharing.

Srinu.

Like 0

Suman Sardar

Blog Post Author

October 13, 2013 at 6:37 am

Thank you for the Appreciation

Like 0

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

Like 0

Former Member

January 5, 2014 at 5:22 am

Nice....One dear.Missed out to publish same document...good one.

Like 0

Former Member

January 8, 2014 at 4:57 am

Thank you very very much

Like 0

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

Like 0

Suman Sardar

Blog Post Author

January 27, 2014 at 4:15 pm

Thank you Nikita for your appreciation.

But do not call me Sir, I am just started my career in SAP.Only Suman will be perfect.

Like 0

Former Member

January 27, 2014 at 4:18 am

Very well documented, thanks.

Like 0

Suman Sardar

Blog Post Author

January 27, 2014 at 4:20 pm

Thank you Pradip

Like 0

Former Member

March 5, 2014 at 3:08 am

hello everybady my question is how many types of payment terms in sap at fico?

Like 0

Former Member

November 20, 2014 at 3:40 pm

Thank you very much. A good explanation of the issue!

Like 0

Suman Sardar

Blog Post Author

November 22, 2014 at 3:32 pm

Thanks for the comment, Van.

Like 0

SANJIT BHATTACHARYA

November 29, 2014 at 5:55 am

Nice Document Suman

Like 0

Suman Sardar

Blog Post Author

December 3, 2014 at 4:05 pm

Thank You, Sanjit

Like 0

Former Member

June 19, 2015 at 4:13 am

I like this article very much. Very comprehensively organized supported with screenshots.

Great work!.

I have a case scenario here, hope you also can help by giving some good suggestion & advices.

This case scenario build on top of the use of the installment payment terms with intention to split invoice posting ( I mean real invoice split at document level with separate SD Invoice & accounting doc posting).

To better visualize the case scenario I am speaking here, let's takes the same payment terms example populated in your document. Payment terms R001, ZR01 ZR02 ZR03 are setup in OBB8 & OBB9 with same installment natures.

After customer delivery made, sales invoice is expected to be posted using the above installment payment terms for the single DO delivery. As the agreed business deal with customer with as per the installment payment terms, customer expects that 3 separate invoices (corresponds to ZR01 ZR02 ZR03) with different document numbering are to be issued. . So, the business case here is no longer able to be easily fulfilled using the "split invoice" functionality which only split the accounting posting line items upon the invoice posting in VF01/VF04. Could you give some suggestion to achieve the business requirement?

Like 0

Former Member

October 23, 2015 at 12:52 pm

good one, I have learnt good things.

Like 0

Former Member

November 10, 2015 at 5:35 am

Please help me on configure terms of payment on below requirement

2% discount on 7 days

1.5% discount on 11 days

1% discount on 15 days

in SAP how configure 1% discount on 15 days on third level

Like 0

Former Member

May 6, 2016 at 11:59 am

Hi,

Nice document. Thanks for sharing your knowledge.

Regards

Karthi

Like 0

Rohit raj

May 6, 2016 at 1:01 pm

Dear Suman,

I have a query here. Can we use the single payment term for different scenarios like:

When discount is made 3%

when advance is made 4%

When final payment is made 6% should be achieved with single payment terms.

Instead of Creating the Multiple Payment Terms.

RR.

Like 0

Former Member

August 16, 2017 at 5:02 am

Dear Suman,

I need to create payment term as below:

milestone 1: 20% of net value (exclude VAT amount) advance

milestone 2: remain (equal to 80% of net value plus full VAT amount) in 30 days

How can I create it? As normal, SAP will calculate 20% and 80% base on gross value of SO.

Thanks & Best regards,

Like 0

Vinod Vemuru

September 30, 2013 2 minute read

Fixed day payment terms – The magic behind due date determination!!!

432924,452

Payment terms define the parameters to derive the due date for the payment of an invoice, cash discount terms and periods, installment terms, default payment block/method that can be set etc. Usually baseline date is defined and derived from payment terms which is in turn used as the base for calculation of due date for payment.

Fixed date payment terms are used when the due date for the payment is a fixed date.

E.G: Payment is due on 20th October of every year.

Usually this kind of payment terms are used in case of seasonal sales/purchases.

Many people might have a doubt, if the due date is a fixed day, why do we need payment terms at all?. Instead, can’t we enter the due date directly in invoice? Fixed day payment terms are used for better management of invoices/payments. We maintain the payment terms in master data of customer/vendor which is defaulted to invoice automatically. So, we don’t have to go through the pain of remembering each fixed date for every customer/vendor.

Definition of fixed day payment term is done with out any baseline date as shown below. Then, how does SAP derives due date?

There is no standard SAP logic which determines the due date for fixed day payment terms. It is left to customers to write their own logic through

BTE (Business transaction event) 1120.

Implicit enhancement can be done in the BTE function module OPEN_FI_PERFORM_00001120_P to write custom ABAP logic and update the field ZFBDT (Baseline date) of internal table t_bsegsub.

One of the flexible way is to maintain a TVARVC variable with the list of fixed day payment terms in the format YYYYMMDD where MMDD is already known.

Year can be replaced with current year/year from posting date through program logic.

In below screenshot, 15th January of every year is the fixed due date for the payment term 070. This TVARVC variable can be queried with the payment term as low value to identify the due date from high value. YYYY should be replaced with year from posting date/any other logic based on business requirement.

Above BTE is called for every FI document creation where due date determination is required (From sales, purchase etc). So, logic has to be restricted based on business requirement.

Your valuable comments/any other better approach if you know would be most welcome

Best regards,

Vinod Vemuru.

Srinu S

October 17, 2013 at 10:21 am

Hi Vinod,

Useful document. Thanks for sharing.

Srinu.

Like 0

Vinod Vemuru

Blog Post Author

October 17, 2013 at 10:55 am

Thanks Srinivas

Like 0

Former Member

October 31, 2013 at 1:39 pm

Good one...Thanks.

Best Regards,

Naresh K.

Like 0

Vinod Vemuru

Blog Post Author

November 5, 2013 at 5:28 am

Thanks Naresh

Like 0

Srinivas Salpala

November 5, 2013 at 5:57 am

Hi,

Nice one. Keep sharing knowledge

BR, Srinivas Salpala

Like 0

Vinod Vemuru

Blog Post Author

November 5, 2013 at 7:56 am

Thanks Srinivas

Like 0

Former Member

November 26, 2013 at 11:54 am

Your Blog is usful and Good.. Thanks ...

Like 0

Vinod Vemuru

Blog Post Author

November 26, 2013 at 12:11 pm

Thanks Ramesh

Like 0

Former Member

December 24, 2013 at 9:31 am

Very Nice document Vinod. Appreciate the add-on Knowledge

Like 0

Vinod Vemuru

Blog Post Author

December 24, 2013 at 10:00 am

Thanks Sowmya

Like 0

Lakshmi Sama

January 2, 2014 at 6:53 am

Hello Vinod,

It is really a nice blog. Thanks to know a new topic from your end and at the same time we are expecting more articles in future also

Doubt - If we want to give any discount how can we proceed further on that.

Can we fix this fixed pyt terms issue through validation/substitution also?

Thanks & Regards,

Lakshmi S

Like 0

Vinod Vemuru

Blog Post Author

January 2, 2014 at 8:38 am

Thanks Lakshmi

The requirement you are asking is for our client only . We explored multiple options with no luck. So, posted question in forum (By Rudra) to seek experts advice.

Thanks,

V V

Like 0

Former Member

January 3, 2014 at 3:12 pm

Thanks for sharing this insightful information......nice to have this document handy!

-Amir

Like 0

Vinod Vemuru

Blog Post Author

January 6, 2014 at 5:57 am

Thanks Amir

Like 0

Mohammed Kalim

January 6, 2014 at 6:11 am

Hi Vinod,

Nice document...Thanks for sharing.

Regards,

kalim

Like 0

Vinod Vemuru

Blog Post Author

January 6, 2014 at 6:32 am

Thanks Kalim

Like 0

Former Member

January 6, 2014 at 12:24 pm

Hi Vinod,

Well written with clear flow of information...

Thanks for sharing..

Rahul

Like 0

Vinod Vemuru

Blog Post Author

January 7, 2014 at 4:27 am

Thanks a lot Rahul

Like 0

narin kamuni

January 8, 2014 at 9:23 am

Good Document, thanks for sharing...

Regards,

Narin Kamuni

Like 0

Vinod Vemuru

Blog Post Author

January 8, 2014 at 10:40 am

Thanks narin

Like 0

Former Member

January 19, 2014 at 9:20 pm

Wonderful Document. This is infact an Innovation!

Like 0

Vinod Vemuru

Blog Post Author

January 20, 2014 at 4:40 am

Thanks a lot Naseem

Like 0

CA. Prasad Atmakuri

January 21, 2014 at 6:31 am

Nice Document

Thanks for sharing

Regards

Prasad

Like 0

Former Member

January 21, 2014 at 6:42 am

Hi Vinod,

Thanks for sharing the knowledge..A question asked often, and you addressed it .

Regards,

Kavita

Like 0

Vinod Vemuru

Blog Post Author

January 21, 2014 at 7:00 am

Thanks Prasad, Kavita

Like 0

Ajay Maheshwari SAP Trainer

January 21, 2014 at 7:04 am

Hi Vinod

Nice document

I am wondering cant this be achieved using the fields "Fixed date" and "additional months"??

If you want invoice will be due always in the next month, on 15th, you can have "Fixed date = 15" and "Additional months = 1"..

For the example you have considered, try with Additional months = 12

Pardon me, if I am wrong, but my memory says I did it once... It was way 3 yrs back.. Can you please check this aspect?

Br, Ajay M

Like 0

Ajay Maheshwari SAP Trainer

January 21, 2014 at 8:38 am

Hi Vinod

I tested this in my system and it worked.

See below..

Can you please revise the document accordingly. Please let me know incase I have misunderstood the whole issue

Br. Ajay M

Like 0

Vinod Vemuru

Blog Post Author

January 21, 2014 at 9:15 am

Thanks Ajay for your valuable inputs.

However, requirement here is little different. It is not always fixed day + fixed additional months. Payment term can be used any time during the year. Due date year should be adjusted to current year/next year comparing with posting date.

E.G:

If my Fixed due date is 15.02.YYYY, If I use my payment terms in Jan 14, then due date would be 15.02.2014. If I use the same payment term from Feb on wards till Jan 2015(This is business requirement), then due date should be 15.02.2015. Can this dynamic date determination possible through standard SAP setup? Awaiting your expert advice

Thanks,

V V

Like 0

Ajay Maheshwari SAP Trainer

January 21, 2014 at 9:24 am

Hi Vinod

Not this dynamism, but some dynamism is possible

Example - If Invoice date is between 1-15, then 15th of next month.. For 16-31, 30th of next month... Such dynamic determination is possible

For the case you have suggested, it wont support.. However, you can have 2 payment terms and write a plain substitution to substitute payment term based on posting date... I dont prefer to go for ABAP if Std solution is possible

No doubts the BTE is a good solution in the case you have suggested.

Br, Ajay M

Like 0

Diwa p

January 21, 2014 at 7:17 am

Hi Vinod,

Very good document.

Regards

Diwa

Like 0

Vinod Vemuru

Blog Post Author

January 21, 2014 at 9:15 am

Thanks Diwa

Like 0

sreehari tokala

April 10, 2014 at 9:54 am

Thank you Vinod . for your addition of knowledge. appreciated

Regards,

Sreehari

Like 0

Vinod Vemuru

Blog Post Author

April 10, 2014 at 10:45 am

Thanks Sreehari

Like 0

Former Member

April 15, 2014 at 6:44 am

Thanks Vinod, its very informative document.

Regards,

Ramesh Kumar

Like 0

Vinod Vemuru

Blog Post Author

April 16, 2014 at 5:01 am

Thanks Ramesh

Like 0

Former Member

August 28, 2014 at 2:13 pm

Hi Vinod,

Thanks for your document. I don't whether it works in my case or not.

We have a requirement to take fixed Day as baseline Date. For Ex: 5th of every Month. After 5th any invoice (Until next 5th) should pick next month 5th as Baseline date. But in standard system it is picking Current month fixed date even after the date.

Like 0

Vinod Vemuru

Blog Post Author

August 31, 2014 at 4:46 pm

Hello,

As we can code our own logic in BTE, this works fine. Get help from your ABAPer on how to code this logic.

Thanks,

V V

Like 0

Arvind Pereira

November 26, 2014 at 6:10 am

Hi Vinod,

Thanks for sharing, appreciate the hardwork.

Regards

Arvind Leo Pereira

Like 0

Vinod Vemuru

Blog Post Author

November 26, 2014 at 3:41 pm

Thanks Arvind

Like 0

Former Member

February 11, 2015 at 3:41 pm

Just a question : In BSEG_SUBST there is no Baseline Date (ZFBDT) field ...

Have you an idea/workaround ?

Regards,

Youri

Like 0

Former Member

February 13, 2015 at 2:57 pm

Solved

I append structure with my field ZFBDT to BSEG_SUBST

Thanks for this document.

Regards

Youri

Like 0

Vinod Vemuru

Blog Post Author

February 18, 2015 at 11:10 pm

Thanks for posting solution . Didn't find time to check this

Like 0

Sandip Kurewar

July 13, 2018 at 8:17 am

Thanks for the valuable content.

Like 0