Here you can see the actual amount which was agreed to be used as basis for the cash discount, plus the payment terms (days / percentages). The customer deducted 150k from our 5 Million € invoice, which is an amount of 3%. To be allowed to do so, he had to pay within 14 days starting from 21st of September 2000.
However as you can see there as well, the invoice was cleared by the incoming payment on 6th of October (which is in fact 15 days later). Of course, sometimes it takes a bit of time for the money being transferred from one bank account to another, plus maybe for our accounting team to do the final clearing. To take this into account, SAP® offers the option to include so-called “Days of grace” based on customer account groups. These will be used on top to the days listed in the payment terms. But again, this is too much detail at this stage.
For me it was important to show you how you could look up if cash discount was granted at all in the original customer invoice, and which percentages / days were in the payment terms, the second message of this article.
I hope you found it interesting and helpful, and if you look at customer financial transactions from now on, please think about the details, and that maybe there was less money arriving on the bank account compared to what SAP® T-Code FBL5n indicates. This may depend on what country you are analyzing, as “Cash discount / Early payment discount” is heavily reagion-specifig. As usual – it is a good idea to go for the details. :)
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