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PaymentTerms how to calculate discount?

  • 14 September 2021
  • 3 replies
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Userlevel 2
Badge +4

Hi folks,

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
 

 

My question:
How could we decide/see, is it payment discount or prepayment?

Thank you for sharing your experience!

 

All the best and stay healthy.

 

Michael

 

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Best answer by Thomas Peterson 14 September 2021, 20:49

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3 replies

Userlevel 6
Badge +10

Hi, 

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, 

Best regards, 

Thomas

Userlevel 2
Badge +4

Hi Thomas,

thank you very much. A very misleading description indead.
I’ll talk to my customer.

cu
Michael

Userlevel 2
Badge +4

Hi,

I would like to add some specific information about that issue.
You know that “germans” are a little bit cracy about numbers and details.

In this case our customer want to see all the discounts (from RMB View starting from CustomerOrderLine = COL) in the report, so I had to join at least 3 different kinds of discounts to the COL.
To see the payment discount on a COL detail granulation, we not only joined with the payment_term_tab but also the payment_term_disc_tab (group by to use the maximum of possible discounts).

So the idea is: If there is payment discount (Skonto), the customer will mostly use the max discount possible.
 

For techs only :-)

LEFT OUTER JOIN
 extr_IFS_PAYMENT_TERM_TAB                    AS PT
ON
 CS.COMPANY = PT.COMPANY
AND
 CO.PAY_TERM_ID = PT.PAY_TERM_ID
LEFT OUTER JOIN
(SELECT COMPANY+'_'+ PAY_TERM_ID    as PayTermKey,MAX(DISC_PERCENT)            as DiscPercent
 FROM extr_IFS_PAYMENT_TERM_DISC_TAB
 group by COMPANY+'_'+ PAY_TERM_ID
 ) as PTDI

So we can use the discount on a COL line and calculate the profit (Deckungsbeitrag) incl. payment term discount.

 

best regards

Michael

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