How To Fix M8366 - Terms of payment are incorrect

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 366

• Message text: Terms of payment are incorrect

What causes this issue?

The system cannot interpret the terms of payment information.
In the header data structure of the incoming invoice, field PMNTTRMS
and at least one of fields DSCT_DAYS1, DSCT_DAYS2, DSCT_PCT1, and
DSCT_PCT2 are filled.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

or
In the header data structure of the incoming invoice, none of the
fields PMNTTRMS, DSCT_DAYS1, DSCT_DAYS2, DSCT_PCT1, and DSCT_PCT2 are
filled, and there are no terms of payment in the first purchase order.

System Response

Processing is terminated. The system does not create an invoice
document.

How to fix this error?

Enter the terms of payment by only entering data in field PMNTTRMS or
only in fields DSCT_DAYS1, DSCT_DAYS2, DSCT_PCT1, and DSCT_PCT2.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8366 - Terms of payment are incorrect ?

  The SAP error message M8366, which states "Terms of payment are incorrect," typically occurs during the processing of a purchase order, invoice, or other financial transactions in SAP. This error indicates that the terms of payment specified in the document do not match the expected or valid terms defined in the system.
  Causes:
  
  Incorrect Configuration: The terms of payment may not be properly configured in the system. This could be due to missing or incorrect entries in the payment terms master data.
  Mismatch with Vendor Master Data: The terms of payment specified in the transaction may not match those defined in the vendor master data.
  Document Type Restrictions: Certain document types may have restrictions on the terms of payment that can be used.
  Missing Payment Terms: The payment terms may not be assigned to the relevant company code or purchasing organization.
  Data Entry Errors: There may be typographical errors or incorrect selections made during data entry.
  
  Solutions:
  
  
  Check Payment Terms Configuration:
  
  Go to the configuration settings in SAP (Transaction code: OBB8) and verify that the payment terms are correctly defined.
  Ensure that the payment terms are active and assigned to the relevant company code.
  
  
  
  Review Vendor Master Data:
  
  Use transaction code XK03 (Display Vendor) to check the vendor master data.
  Ensure that the correct payment terms are assigned to the vendor in the relevant purchasing organization and company code.
  
  
  
  Validate Document Type:
  
  Check if the document type being used allows the specified terms of payment. You can review the settings in the configuration for the document type.
  
  
  
  Correct Data Entry:
  
  Review the transaction where the error occurred and ensure that the payment terms are entered correctly.
  If necessary, re-enter the payment terms to ensure there are no typographical errors.
  
  
  
  Consult with SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting SAP documentation for further assistance.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  OBB8: Configuration for Payment Terms
  XK03: Display Vendor
  ME21N: Create Purchase Order
  MIRO: Invoice Verification
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to payment terms and error M8366.
  
  
  Documentation: Review SAP Help documentation for detailed information on payment terms and their configuration.
  
  
  By following these steps, you should be able to identify and resolve the cause of the M8366 error in SAP.