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what's the meaning of "Cash discnt adj.to" in define FI tolerance group

Former Member
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184

Hi,gurus,

in IMG,define FI tolerance group for users(TCODE:OBA4),what's the meaning and usage of field "Cash discnt adj.to",I read the F1 info,but can't understand exactly. could any explain this to me?

thank you very much!

Accepted Solutions (1)

Accepted Solutions (1)

former_member200240
Active Contributor
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Hi

It represents the amount (which you can enter in this field) up to which the system can correct the cash discount. In this case the cash discount is automatically increased or decreased by the difference using tolerance groups. This is over and above the Cash discount you take or give to the Vendor/Customer.

Hope it is clear

Jayaram

Former Member
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thank you Jayaram,

could you gave me a example? like I have a 100$ AR from customer A ,and I got the income payment of 110$,I got Cash discnt adj.to 8$, what's the relations among them?

thank you again!

former_member200240
Active Contributor
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Hi

In AR, you will give cash discount to customer and not the other way round as you mentioned.

For eg if AR value is 100 and customer pays you 90, there is a difference of 10. Assume you have cash discount % of say 6%, you expect the customer to pay 94 (100- 6% of 100) and not 90. There is still a gap of 4. This can be added to cash discount account if you enter 4 in this field. Hence the A/c entry will be:

Dr Bank 90

Dr cash discount (expense/loss) 10

Cr Customer 100

However this field is interlinked with some other fields like "Cash discount per line item", etc

Jayaram

Former Member
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Hi,Jayaram,thank you very much, Now I understand it,thank you

Answers (0)