Terms of payment code (SAP Business One)

The alphanumeric key in SAP Business One that identifies the individual terms of payment clearly identified. It serves as an identifier for agreed payment terms between companies and their business partners. New terms can be created or changed via the "Payment terms - Definition" window.

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This code is displayed in a drop-down list in the system.

Assignment of payment terms: In the Business partner-Payment terms can be assigned to a business partner in the master data window ("Payment terms" tab).

Context and application: The code is entered in the "terms of payment" in vouchers, as well as in the Business partner master data is used. There it acts as a default value that can be overwritten if required. The code is also displayed in the drop-down selection, which is why it should be formulated in a self-explanatory manner.

Design rules and recommendations:

Codes for customer conditions should be marked with "K"for supplier conditions with "L" begin.
Avoid cryptic abbreviations: The code should provide information on discounts, payment terms or other relevant aspects (e.g. K10-30 for "10 days 2% discount, 30 days net").
The sign % must not be used in the code of the cash discount definition. Instead, the word "per cent" must be written out in full (e.g. 2per cent). In the Names of the condition, the use of "%" is permitted.

Functional significance: When a payment term is selected via the associated code, predefined values such as discount periods, discount rates, tolerance days, credit limit and commission rates are automatically transferred to the document or master record.

Related fields: Of the Payment method code in the window Payment methods - definition is a supplementary, albeit independent, code for processing payments, which is available under Administration → Definitions → bank processing is maintained.

Example: A payment term code K10-30 could mean: 2 % discount for payment within 10 days, full payment no later than 30 days after the invoice date. The specification is made automatically in documents on the basis of the business partner's data.