How do you manage purchase order payment terms in SAP?

1 Creating purchase order payment terms

To create purchase order payment terms in SAP, you need to define a payment term code and assign it to a vendor master record. A payment term code consists of a key, a description, and a number of parameters that determine the due date, the cash discount, and the payment method. You can create payment term codes in the transaction code OBB8 or in the menu path SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Maintain Payment Terms. Once you have created a payment term code, you can assign it to a vendor master record in the transaction code XK02 or in the menu path Logistics > Materials Management > Purchasing > Master Data > Vendor > Change.

3 Displaying purchase order payment terms

To display purchase order payment terms in SAP, you can use various reports and transactions such as ME2N, ME2L, ME2M, FBL1N, F110, and S_ALR_87012077. These reports and transactions show the payment term code, the due date, and the cash discount for each purchase order. Additionally, the Due Date Analysis for Open Items report can be used to evaluate the payment terms.

4 Using purchase order payment terms in reports and analysis

SAP provides information in the fields of the purchase order and vendor line items tables which can be used to create reports and analysis. These fields include ZTERM (Payment Term Code), ZBD1T (Cash Discount Percentage 1), ZBD2T (Cash Discount Percentage 2), ZBD3T (Cash Discount Percentage 3), ZFBDT (Due Date), ZBD1P (Cash Discount Days 1), ZBD2P (Cash Discount Days 2), and ZBD3P (Cash Discount Days 3). With these fields, custom reports and analysis can be produced using tools like ABAP, Query, or BI. For example, a report could be created to show average payment delay, cash discount utilization, and payment performance by vendor or purchase order.