How to Create Payment Term in SAP

How to Create Payment Term in SAP.

Understanding: Payment term is a 4-digit alphanumeric field in SAP. It is an agreement between a company code with the business partners (customer master/vendor master) and which includes due date and discount rates for the business transactions.

Configuration of Payment term in SAP T code: OBB8.

SPRO Path -> Reference IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Incoming Invoices/Credit Memos -> Maintain Terms of Payment -> Click on Execute.

Click on New Entries.

Now give inputs like below.

Key Points:

1. It is a 4-digit alphanumeric field in SAP.
2. User can apply the payment term at account type – customer/vendor.
3. Here the Discount rates and Due dates will be maintained.
4. Based on terms, system will generate the explanation (if user want to give own text, then give it in own explanation field).

Once entered details like above screen, Click on Save button.

Customizing request popup will come, select your request and click on continue.

Now we need to assign the Payment term to Business partners (Vendor or Customer)

• Assign Payment term to Vendor Master
• Assign Payment term to Customer Master

Other contents you may like:

• How to Create Vendor Master data in SAP: Click here
• How to Create Vendor Business Partner in S4 Hana: Click here
• How to Post Vendor Invoice (FB60) in SAP: Click here
• How to check the Vendor open items in SAP: Click here
• How to check Vendor account balance in SAP: Click here
• How to make Manual Vendor Payment in SAP: Click here

SAP FICO Configuration topics:

• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• SAP Finance New Asset Accounting: Click here
• How to Create a Controlling area in SAP: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here

With this blog user will understand, How to Create Payment Term in SAP.