Terms of payment -3% discount in 10 days from invoice date or 45 days EOM from invoice.

[stsi_23]

Hello, 

I have a problem with a payment term. Could you help me ?

I would like to have the payment term below

-3% discount in 10 days from invoice date or 45 days EOM from invoice.

[Mahmud_FICO]

Payment Term: “3% discount in 10 days from invoice date or 45 days EOM”

This means the customer/vendor has two options for paying the invoice:

Option 1: Take Cash Discount

If payment is made within 10 days from the invoice date

Then they get 3% discount on the invoice amount

→ This is the cash discount period.

Option 2: Pay Full Amount

If they don’t take the discount

Then the full amount is due 45 days after the end of the month (EOM) of the invoice date

→ This is the net due date.

Example for clarity

Invoice Date: 10 January 2025

Discount Option:

Pay on or before 20 January 2025

→ Pay 97% of invoice amount.

Net Payment Option:

End of invoice month = 31 January 2025

Add 45 days → 17 March 2025

→ Pay 100% of invoice amount.

Configuration in SAP represents this in Payment Terms (OBB8)

OBB8 – Payment Terms Header

Discount Percentage (SKTO1): 3%

Discount Days (ZTAG1): 10 days

Net Terms: 45 days from EOM

→ Set “Baseline Date Calculation = Fixed Day=31”

→ Set net days = 45

[Mahmud_FICO]

Payment Term: “3% discount in 10 days from invoice date or 45 days EOM”

This means the customer/vendor has two options for paying the invoice:

Option 1: Take Cash Discount

If payment is made within 10 days from the invoice date

Then they get 3% discount on the invoice amount

→ This is the cash discount period.

Option 2: Pay Full Amount

If they don’t take the discount

Then the full amount is due 45 days after the end of the month (EOM) of the invoice date

→ This is the net due date.

Example for clarity

Invoice Date: 10 January 2025

Discount Option:

Pay on or before 20 January 2025

→ Pay 97% of invoice amount.

Net Payment Option:

End of invoice month = 31 January 2025

Add 45 days → 17 March 2025

→ Pay 100% of invoice amount.

Configuration in SAP represents this in Payment Terms (OBB8)

OBB8 – Payment Terms Header

Discount Percentage (SKTO1): 3%

Discount Days (ZTAG1): 10 days

Net Terms: 45 days from EOM

→ Set “Baseline Date Calculation = Fixed Day=31”

→ Set net days = 45