long time since my last topic here.
I’ve got an interesting scenario here.
My customer want to calculate the payment discount into the profit margin.
I will find a PAY_TERM_ID in the CUSTOMER_ORDER_TAB.
I hop to PAYMENT_TERM_TAB and will find the description.
In PAYMENT_TERM_DETAILS_TAB is the field NET_AMOUNT_PERCENTAGE and in
PAYMENT_TERM_DISC_TAB I will find DISC_PERCENT.
So, if we expect that our customer will “draw” 2 % discount (Skonto) within first 15 or 30 or what so ever days we can calculate SalesPrice - 2% discount results in minus 2 % less profit margin.
Now the problem:
When I scan the PAYMENT_TERM_DISC_TAB I will find discount for a PT like
“8 days 3%, 21 days net” so the 3 %”.
But also I will find:
“Prepayment 5%, 14 days 3%, 60 days net” and two (!) records in the PAYMENT_TERM_DISC_TAB
How could we decide/see, is it payment discount or prepayment?
Thank you for sharing your experience!
All the best and stay healthy.
Best answer by Thomas Peterson
The example on the screen is a sample of a payment term discount. The description - pre-payment is just a description. Based on the discount dates, if the payment is received within two days the payer would be able to take a 5% discount. But if the payer pays within 14 days they would be able to take a 3% discount. Then no discount after the 14 days.
Typically if we “really” want a pre-payment we would use an advance invoice (for example) and request a prepayment before the order is shipped. / invoiced.
The description on that payment term is “in my opinion” misleading unless this payment term was intended to be used in conjunction with advance invoice or similar,