Cash Discount in MIRO

SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 1 Cash Discount in MIRO Applies to: Below configuration is based on SAP ECC 6.0. For more information, visit the Enterprise Resource Planning homepage. Summary This article contains the configuration and user manual for cash discount amount expected is already taken into consideration when the invoice is posted. The type of price control defined for the material determines which offsetting account is posted when the stock account is posted. Author: Binoj M D. Company: Applexus Technologies (P) Ltd. Created on: July 5, 2011 Author Bio Binoj M D is working as SAP FICO with Applexus Technologies (P) Ltd. He is having expertise in various Implementation, Support and Rollout Projects across various countries. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 2 Table of Contents Net Posting ......................................................................................................................................................... 3 Net Posting for a Material with a Moving Average Price ................................................................................. 3 Configuration: ..................................................................................................................................................... 4 Maintain Terms of Payments: OBB8 ............................................................................................................... 4 Define Cash Discount Account: OBXA ........................................................................................................... 4 Maintain FI Configuration: Automatic Posting: FBKP (another Path) ............................................................. 5 Invoice Verification: MIRO............................................................................................................................... 6 Payment: F-53 ................................................................................................................................................. 8 Gross Posting ..................................................................................................................................................... 9 Configuration: ..................................................................................................................................................... 9 Maintain Terms of Payments: OBB8 ............................................................................................................... 9 Define Cash Discount account: OBXA .......................................................................................................... 10 Invoice Verification: MIRO............................................................................................................................. 10 Doc. Type should be RE Invoice-Gross ........................................................................................................ 10 Payment: F-53 ............................................................................................................................................... 11 Related Content ................................................................................................................................................ 12 Disclaimer and Liability Notice .......................................................................................................................... 13 Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 3 Net Posting The cash discount amount expected is already taken into consideration when the invoice is posted. The type of price control defined for the material determines which offsetting account is posted when the stock account is posted. Material with Standard Price The cash discount amount is credited to the income from price differences account and debited from the cash discount clearing account. Material Valuated at a Moving Average Price The tax amount is credited to the stock account and debited from the cash discount clearing account, provided that there is sufficient stock to cover the quantity invoiced. Net Posting for a Material with a Moving Average Price If an invoice contains a cash discount and taxes, more tax is posted with the invoice than should be, as the cash discount is not taken into account. When payment is made, the system automatically corrects the tax payment: The tax amount for the cash discount is credited to the input tax account. The input tax account is debited with $15 when the invoice is posted. However, only $95 (100 - 5%) is to be taxed. Therefore, the tax to be paid is 15% of $95 = $14.25. The difference of $0.75 is credited to the input tax account when the invoice is paid. It is also possible to post the goods receipt net. In this case, when an invoice is entered, only the GR/IR clearing account is cleared and the vendor account credited. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 4 Configuration: Maintain Terms of Payments: OBB8 Cash Discount percentage has to be defined (mandatory). Define Cash Discount Account: OBXA Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 5 Maintain FI Configuration: Automatic Posting: FBKP (another Path) Select Cash Discount & Payment differences. Double click on Cash Discount Clearing (net method) with Transaction Event Key ‘SKV’. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 6 Put Cash Discount Clearing Account number. Invoice Verification: MIRO Doc. Type Should be RN Invoice-Net Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 7 We can also give cash discount manually in Discount column. If we not specified any amount in discount column, it will calculate discount based on terms of payment. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 8 Payment: F-53 Click on Simulate button Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 9 Gross Posting If an invoice contains a cash discount and taxes, more tax is posted with the invoice than should be, as the cash discount is not taken into account. When payment is made, the system automatically corrects the tax payment: The tax amount for the cash discount is credited to the input tax account. The input tax account is debited with $15 when the invoice is posted. However, only $95 (100 - 5%) is to be taxed. Therefore, the tax to be paid is 15% of $95 = $14.25. The difference of $0.75 is credited to the input tax account when the invoice is paid. Configuration: Maintain Terms of Payments: OBB8 Cash Discount percentage has to be defined (mandatory). Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 10 Define Cash Discount account: OBXA Invoice Verification: MIRO Doc. Type should be RE Invoice-Gross Cash Discount will not calculate at MIRO level. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 11 Payment: F-53 Click Simulate Button. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 12 Related Content For more information, visit the Enterprise Resource Planning homepage. Cash Discount in MIRO SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BA - boc.sap.com | UAC - uac.sap.com © 2011 SAP AG 13 Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. 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