What is cash discount base amount in SAP FI - Financial Accounting?

SAP Term: cash discount base amount

• Component: FI

• Component Name: Financial Accounting

• Description: A portion of the invoice amount for which cash discount is granted.

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• Key Concepts: 
  Cash discount base amount is a term used in SAP Financial Accounting (FI) to refer to the amount of an invoice that is eligible for a cash discount. This amount is calculated by subtracting any taxes, freight charges, and other non-discountable items from the total invoice amount. 
  
  How to use it: 
  The cash discount base amount is used to determine the amount of a cash discount that can be applied to an invoice. This amount is then multiplied by the cash discount percentage to calculate the actual cash discount that can be applied. 
  
  Tips & Tricks: 
  When calculating the cash discount base amount, it is important to ensure that all non-discountable items are taken into account. This will ensure that the correct cash discount is applied to the invoice. 
  
  Related Information: 
  The cash discount base amount is closely related to other terms such as net due date and payment terms. It is important to understand how these terms interact with each other in order to properly manage invoices and payments in SAP FI.