Terms of payment are conditions agreed upon by business partners for the payment of invoices. True False.
Some terms of payment are predefined in the SAP ERP application. You can also add new terms of payment if required.Terms of payment define the following parameters: Payment term Cash discount offered for payment of the invoice within a certain period Due Date.
Terms of payment enable the SAP ERP application to calculate the following fields: Cash Discount Validity date Invoice due date.
To calculate the cash discount and invoice due date fields, the SAP ERP application needs the following data : Base Line Date : The date from which the due date is derived Cash Discount Terms : The terms on which the cash discount can be applied Cash discount percentage rate : The rate used to calculate the cash discount
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When you process a document, you need to enter the terms of payment for the SAP ERP application to calculate the required conditions of payment. In the master record of a customer or a vendor, the terms of payment are stored. They become the default terms when posting transactions. However, a user can not change these terms, if needed.
True False.
You can enter the terms of payment in the Company code, sales area, and purchasing organization segments of a customer or vendor master record.
The terms of payment that are defaulted when posting an invoice depend on where the invoice is created.
True False.
The invoice can be created in any one of the following locations: Financials: The terms of payment from the company code segment are defaulted.
Sales order management: The terms of payment from the sales area segment are defaulted. When you post the invoice in sales-order management, the terms of payment are copied to the FI invoice, which is created automatically .
Purchasing Management: The terms of payment from the purchasing organization segment are defaulted. When you post the invoice in purchasing management, the terms of payment are automatically copied to the accounting document.
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When you enter a vendor invoice, you can not set a fixed amount as a cash discount or fixed cash discount percentage rate. The cash discount is independent of the payment period or date. To set a fixed cash discount or fixed cash discount percentage rate, you may not make the appropriate entry in the Cash Discount field. False True.
The following options are available for posting the terms of payment in credit memos: Invoice-related credit memos : You can link the credit memos to the original invoice by entering the invoice number in the Invoice Reference field during document entry. In this case, the terms of payment are copied from the invoice to the credit memo. Both the invoice and the credit memo are then due on the same date. Vendor Account Other credit memos : The terms of payment in credit memos that are not linked to their original invoices are ignored. These credit memos are due on the baseline date. To activate the payment terms on these non-invoice-related credit memos, enter a V in the Invoice Reference field when entering the document.
Terms of Payment: Basic Data: You can specify the following terms of payment for incoming invoices and incoming credit memos: Day limit: Expresses the calendar day to which the terms of payment are valid. You can use the day limit to store single or multi-part terms of payment in a terms-of-payment key. Description: Includes the explanation that the SAP ERP application automatically generates. You can replace this explanation with your own. It also includes the sales order management text for printing on invoices. Account type: Defines the sub ledger in which the terms of payment can be used. Define separate terms of payment for vendors and customers and only use them for one account type. This prevents any change that you make in the terms of payment for your customers taking effect for the postings to your vendors. An example is changing the cash discount percentage rate from 3% to 2%.
Terms of Payment ( Payment Controls) : While defining terms of payment, you can control payments by using A block key : You can use the block key (= blocking reason) to block line items for payment during posting. The payment program can then neither collect nor pay for the item. This is particularly useful for vendor invoices. Here, first, you always set a payment block.Then, a second person checks the invoice and removes the payment block (dual control principle). Payment method: The payment method determines the procedure to be used for payment (check, transfer, and bill of exchange). The payment method is entered in the customer or vendor master record and not in the document. Dunning Programme.
You can set the block key and the payment method in the following transactions: During posting In the customer or vendor master record (company code segment) Payment Method In the terms of payment.
The block key and the payment method defined in the terms of payment are defaulted in the document header False True.
The system uses the baseline date to calculate the due date for the invoice and the cash discount terms. The baseline date can either be proposed or entered manually. True False.
To calculate the baseline date with the day limit, the SAP ERP application requires the following information: Fixed day : This is a day that can be used to overwrite the calendar day of the baseline date. For example, the fixed day can always be the 15th of the month. Number of additional months : These are the months that need to be added to the calendar month of the baseline date. Invoice date.
To calculate the cash discount, enter a percentage rate in the terms of payment. In the same line, you also need to enter the number of days for which the percentage is valid. If needed, you can add fixed days and months in the terms of payment line. True False.
The days and months specified in the terms of payment are used in conjunction with the baseline date to calculate the correct cash discount amount for the payment date.You can enter up to three cash discount periods. True False.
Day limits enable date-specific terms of payment in single terms of payment key.You can not define several versions of the terms of payment, with each version having a different day limit.
True False.
The day limit is the baseline date up to which the payment term version applies. For terms of payment that are dependent on a day limit e.g., if the baseline date is before the 15th of the month, you can enter two-part terms of payment under the same terms of payment key. The entry for the specified day limit is added to the terms of payment key. This results in two entries where different terms of payments can be defined. Flase True.
The following terms of payment require the specification of a day limit: Documents with an invoice date up to the 15th of the month are payable on the last day of the following month. Documents with an invoice date after the 15th of the month are payable on the 15th of the month after the following month. Fixed date for term of payment.
You can pay an invoice over several months using an installment plan. You can also retain a portion of the invoice amount for payment later.The total invoice amount is divided into partial amounts that are due on different dates. True False.
The SAP ERP application does not carry out the split automatically even if installment payment is defined in the terms of payment. True False.
To define installment payments in the terms of payment, first select installment payment (do not assign any cash discount periods or cash discount percentage rates).
Then, define the following items for each installment: Installment number Percentage rate (The percentage rates specified must total 100%.) Term of payment.
The SAP ERP application creates a line item for each installment specified. The line item amounts correspond to the percentages of the total amount. The total of the line item amounts corresponds to the total amount.
The terms of payment for the line items are the terms of payment defined for the individual installments. False True.
Depending on the national regulations of your country, the base amount of the cash discount can be the net value of the total of the general ledger account and fixed asset line items, without taxes. The base amount can also be the gross value of those items, including taxes. For each company code or tax jurisdiction code, you need to specify the value that the SAP ERP application will use as cash discount base. This setting belongs to the global parameters of a company code. False True.
Cash discount amounts can be entered manually, or by configuring the SAP ERP application to automatically use the rates in the terms of payment. You can not change the cash discount after posting the invoice. True False.
When you clear an open item on a customer or vendor account, the SAP ERP application automatically posts the applicable cash discount to an account for cash discount expense or cash discount received. True False.
You can not define the accounts for cash discount expense or cash discount revenue in the configuration. True False.
If you post a vendor invoice with a document type for the net procedure, the SAP ERP application automatically reduces the cash discount amount from the expense or balance sheet account. The application then posts the same amount to a cash discount clearing account to clear the posting. False True.
When you use the net procedure, the cash discount amount is automatically posted along with the invoice. True False.
When the invoice is paid, the SAP ERP application carries out a clearing posting to the cash discount clearing account.
If the invoice is paid after the cash discount deadline, the cash discount loss is posted to a separate account.
The cash discount clearing account must be managed on an open item basis. True False.
The SAP ERP system only supports the Net Procedure for Customers True False.
When posting an invoice, SAP allows taxes to be levied on the invoice amount as: Tax on Sales/Purchase US Sales Tax Additional Taxes Withholding Taxes Capital Gain Tax.
Two taxation types are possible in SAP ERP system: Federal/Country Level : Taxes with uniformly defined rates that are levied at a national level Local Government Level : Taxes with uniformly defined rates that are levied at Local Govt. Level State/Jurisdiction Level : Taxes with rates defined by a state or jurisdiction that are levied at a state or jurisdictional level.
The SAP ERP system provides supports for : Calculate tax amount Posting to defined tax account Performing tax adjustments Tax reporting Tax Legal matters.
The SAP ERP system calculates the tax amount from : Base amount with or without a cash discount Tax codes to check or calculate tax amount Tax rates for calculation of tax.
The expense or revenue amount is the base amount, which can either include or exclude a cash discount. In the former case, the tax base is taken as a gross value while in the latter case, it is taken as a net value. True False.
National regulations define the base tax amount as one of the following amounts: Net amount : The taxable expense or revenue items less a cash discount Gross amount : The taxable expense or revenue items including a cash discount.
In the SAP ERP application, a preconfigured procedure for tax calculation exists for every country. True False.
The tax calculation procedure contains the following elements: Sequence of the steps : These are the steps required in the tax calculation procedure. It indicates the point at which the system calls the base value for the step. Tax types (condition types) : Condition types are tax calculations that are valid for a country. The base amount is an expense or revenue item. Account key or transaction key : This key covers additional specifications and is used for the automatic account determination of the taxes concerned. Predefined account keys are included in the SAP ERP application. It is recommended that you use these standard account keys.
When you post a document, you also enter its tax code. The tax code connects the document to the tax calculation. This connection varies according to whether the country in question uses a tax calculation procedure dependent on tax jurisdiction codes or not? True False.
The tax code is linked with one of the following values: Country key
Combination of country key and tax jurisdiction code.
The tax codes within a jurisdictional taxation method are date specific. In the configuration, you can choose whether the document date or the posting date is valid for the tax calculation. False True.
Some postings to tax-relevant G/L accounts must have a tax rate of zero. This case applies to the following items: Items that are tax exempt but have to be reported to the tax authorities. For these items a special tax code with a tax rate of zero is created. Items that are created by tax-exempt transactions, such as the issue and movement of goods issues. You must assign a special tax code to these transactions. For tax adjustment purposes.
The tax type definition determines if the base amount is ”percentage included” or ”percentage separate.” True False.
If the system detects a deviation between the tax calculated and the tax amount entered, it issues either an error message (check indicator set) or a warning message (check indicator not set). The check indicator is not set for input tax codes because the user must post the tax amount from the invoice, regardless of whether it is correct or not. True False.
Tax code also contains tax rates. Tax rates are assigned to the tax types used in the tax calculation procedure. You can set-up a tax code with several tax rates entered for different tax types (if a line item is to be taxed with several tax types), but usually only one tax rate is entered.
An example of a tax code with more than one tax rate is the 10% input tax on an item for which 40% of the tax amount is nondeductible.This example means 6% input tax and 4% nondeductible input tax. True False.
Tax postings can be of the following types: Taxes calculated by the application are usually posted through a separate line item to a special tax account. This is the standard scenario. Taxes with certain transaction or account keys are distributed to the relevant expense or revenue items, such as the case of sales tax payables or other nondeductible input taxes.
To enable the automatic determination of tax accounts, assign the following data to the account or transaction keys that generate tax items during posting: Tax accounts Posting keys (40 and 50 are recommended) Rules, which determine fields, such as the tax code or the account key, on which account determination is based Tax Jurisdiction.
When exchange rate differences occur because of tax adjustments in foreign currencies, these differences are usually posted to the normal account for exchange rate differences. However, for each company code, you can specify that the exchange rate for tax items can also be entered manually or be determined by the posting or the document date. The resulting differences are posted to a special account True False.
You can define tax accounts, or accounts to which tax items are posted, in the Tax Category field by entering one of the following signs: Input Tax Output Tax Tax Refund.
If you select the Postings Without Tax Allowed field, then you can post to the General Ledger Account without specifying a tax code, an action that is necessary for tax postings within a calculation procedure for a jurisdiction code tax for foreign customers who do not have a jurisdiction code. True False.
Accounts for cash discounts need an entry in the Tax Category field so that the system can post tax adjustments.
True False.
A cross-company code transaction involves two or more company codes in one business transaction. True False.
Some examples of cross-company code transactions are as follows: One company code makes purchases for other company codes (Central Procurement). One company code pays the invoices for other company codes (Central Payment). One company code sells goods to other company codes. One company pays to other company.
A cross-company code transaction posts to accounts in several company codes.This action cannot be done by posting only one document because one document is assigned to exactly one company code. Instead, the SAP ERP application creates and posts a separate document for each company code involved. True False.
In cross company code transactions,to balance debits and credits within the documents, the SAP ERP application automatically generates line items and posts them to clearing accounts, for payables or receivables True False.
A common cross-company code transaction number links all the documents belonging to one cross-company code transaction.
You can use report RFBVOR00 to display cross-company code transactions. True False.
The SAP ERP application always posts the calculated tax to the company code of the first item. To ensure that the application posts the tax to the same company code that the invoice references, you must always enter the invoice item first. The tax regulations of countries such as Japan and Denmark require the tax amounts to be posted to the company codes in which the expenses occurred. True False.
In the SAP ERP application, every company code must not have a clearing account. The clearing account is not required to perform a cross-company code transaction. True False.
In cross company code transactions, you can define the following types of clearing accounts: General Ledger account Customer account Vendor account Asset account.
You must assign clearing accounts to every possible combination of two company codes to allow cross-company code postings between them.For example, three company codes will need 3*2 = 6 clearing accounts.
To reduce the number of clearing accounts, you can use just one company code as the clearing company code.. In this case, you only need to assign clearing accounts to every combination of the clearing company code and the other company codes.The three company codes need 2*2 = 4 clearing accounts. True False.
You must assign posting keys to the clearing accounts to identify their account types. True False.
When you post a cross-company code document, the SAP ERP application generates a cross-company code document number to link all new documents together. The document number is a combination of the document number of the first company code, the first company code number, and the fiscal year. The cross-company code document number is stored in the document header of all related documents for a complete audit trail.To reverse cross-company code documents, use the reversal function for cross-company code transactions. True False.
In many Controlling postings, the SAP ERP application addresses financial accounting objects. These cases are implemented using real-time integration CO → FI in financial accounting. Variants defined in Customizing are used to determine the objects for which such postings must be created. True False.
Real-time integration affects the following cases: Posting between controlling objects with different accounting objects maintained (profit center, segment, business area, or functional area). Within the modules for instance MM to SD Costs are posted across company codes in cross-company code cost accounting. In such cases, postings must also be correspondingly mapped in accounting.
To determine the characteristic changes that will generate real time FI line items, use the following actions: Use Check boxes. Define Boolean rules. Implement a BAdI with your own program logic.
The key date activation defines when (from which posting date of the CO document) CO-FI reconciliation is possible with real-time integration.
You can also create Financial Accounting documents for all the CO documents entered before you activated the new general ledger.
True False.
The financial accounting document has the following features: For each CO document, the SAP ERP application makes postings in real time. The FI follow-on document has no clearing accounts. Clearing lines are only necessary if the activity in Management Accounting or CO results in a change of a balancing entity. It is possible to navigate from the real-time follow-on Financial Accounting document to the Management Accounting document and vice versa.
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