F&A_MN_PL_CCD_31082019_004 (Customer Credit Terms Master)

F&A_MN_PL_CCD_31082019_004 (Customer Credit Terms Master)

Useful: For the CCD/F&A/Sales

 

Dear All,

 

It was observed that there were multiple credit terms in SAP which lead to lot of confusion. Further in some of the credit terms the days calculated by SAP were also not correct because the master data creating itself was wrong.

Owing to above a need was felt to harmonize the credit terms and simplify these to the core for easy understanding of all across the MN eco system as well as HO.

In order to address this concern a detailed analysis of usage of current credit terms was done and the no. of different credit terms configured in SAP were brought down from 40+ to 16.

 

The current list of credit terms active in SAP after above exercise is as follows with a brief on their usability.

 

Code

Payment Terms

For

Due Date

Z001

120 Days

Open Credit

Invoice Date +120 Days

Z004

90 Days

Open Credit

Invoice Date +90 Days

Z011

30 Days

Open Credit

Invoice Date +30 Days

Z012

45 Days

Open Credit

Invoice Date +45 Days

Z013

60 Days

Open Credit

Invoice Date +60 Days

Z006

Cash on Delivery

Payment on Delivery

Immediate on Invoice Date

Z016

Advance with LPO

Payment with Customer LPO

Immediate on Invoice Date

Z007

PDC on Delivery- 120 days

Secured Payment Thru PDC on delivery

Immediate on Invoice Date

Z008

PDC on Delivery- 30 days

Secured Payment Thru PDC on delivery

Immediate on Invoice Date

Z009

PDC on Delivery- 60 days

Secured Payment Thru PDC on delivery

Immediate on Invoice Date

Z010

PDC on Delivery- 90 days

Secured Payment Thru PDC on delivery

Immediate on Invoice Date

Z015

Irrevocable Sight Letter of Credit

Secured Payment Thru LC before delivery

Immediate on Invoice Date

Z017

Irrevocable Letter of Credit 30 days

Secured Payment Thru LC before delivery

Invoice Date +30 Days

Z018

Irrevocable Letter of Credit 60 days

Secured Payment Thru LC before delivery

Invoice Date +60 Days

Z019

Irrevocable Letter of Credit 90 days

Secured Payment Thru LC before delivery

Invoice Date +90 Days

Z020

Irrevocable Letter of Credit 120 days

Secured Payment Thru LC before delivery

Invoice Date +120 Days

 

Important points to be noted:

 

  • Since PDC is now accounted by F&A on immediate basis with a future date in SAP therefore PDC is also immediate due.
  • Wherever the Due date is immediate on Invoicing credit limit will always be kept Nil and Sales team need to ask CCD to give the credit limit in such customers to book the sales order.
  • Credit Limit for all such customers would be given only to the extent of LPO in hand to keep control on build of OS for such accounts.
  • For “Advance with LPO” there will be no credit limit as the customer advance will be accounted to give him necessary credit for making the delivery and the invoicing.
  • All these changes will be applicable only for new documents created in system.
  • While we have changed all necessary parameters at configurational level for payment terms we are still in the process of revisiting each customer and reassess its credit terms both in terms of credit limit and credit period.
  • In case if there are any potential credit terms which are missed please get in touch with CCD team with proper explanation for them to add the same in SAP.
  • Any unique payment terms for eg: 50% Adv and 50% after delivery cannot be configured in SAP and hence please discuss with CCD/IT to have the most appropriate credit term in SAP.

 

Expecting everyone to follow this immediately. In case of any issues or queries please contact the CCD team.

 

Thanks & Regards

Piyush Agarwal

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