What is block discount in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: block discount

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A discount determined by applying discounts from all applicable intervals for a quantity. If the amount of a block is exceeded, then the next highest discount applies only within the block that is reached. The next highest discount is not applied for amounts of the previous blocks. Example Block 0-100: 10.00 Block 100 to 500: 20.00 Block 500 to 999999999: 30.00 The invoice amount is 450. The amount of 100 is in the block from 0 to 100, for which a discount of 10 is applied. The remaining amount of 350 is in the block from 100 to 500, for which a discount of 20 is applied. In total the customer receives a discount of 30, that is, the sum of 10 + 20 for the individual blocks.

Smart SAP Assistant

• Key Concepts: 
  Block discount is a feature in the FI-CA Contract Accounts Receivable and Payable component of SAP that allows customers to receive discounts for making payments in bulk. This feature allows customers to pay for multiple invoices at once, and receive a discount for doing so. 
  
  How to use it: 
  To use the block discount feature, customers must first select the invoices they wish to pay in bulk. Once the invoices have been selected, customers can enter the total amount they wish to pay and the system will automatically calculate the discount based on the number of invoices selected. The customer can then proceed with payment. 
  
  Tips & Tricks: 
  It is important to note that block discounts are only available for invoices that have not yet been paid. Additionally, customers should be aware that block discounts are only available for certain types of invoices, such as those related to services or products. 
  
  Related Information: 
  For more information on block discounts in SAP FI-CA Contract Accounts Receivable and Payable, please refer to the official SAP documentation. Additionally, customers can contact their SAP representative for more information on how to use this feature.