tolerance days In SAP Business One, additional days are granted beyond the actual due date of a receivable before a reminder is triggered or late payment interest is calculated.
Functionality
Tolerance days act as a buffer between the due date and the actual start of dunning. They take into account typical delays in payment transactions, such as bank processing times or administrative processing times.
- Intolerance of reminders Delays the dunning run by the defined number of days
- Interest intolerance Postpone the start of the default interest calculation
- Account tolerance Allows cash discount deduction even after the cash discount period has expired
Use in SAP Business One
Grace periods are stored in the payment terms or company data. They help medium-sized businesses to avoid straining customer relationships with hastily issued reminders, while simultaneously ensuring professional receivables management.
Practical tip
Apply grace periods selectively – be slightly more lenient for regular customers with a reliable payment history, and a bit tighter for new customers.