What is vendor net procedure in SAP FI - Financial Accounting?

SAP Term: vendor net procedure

• Component: FI

• Component Name: Financial Accounting

• Description: A procedure whereby cost or inventory postings are reduced automatically by the expected cash discount when an invoice is posted. For example, you can post exact acquisition values less the cash discount to fixed assets accounts.

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• Key Concepts: 
  Vendor net procedure is a feature of SAP Financial Accounting (FI) that allows vendors to receive payments for goods and services without having to wait for the customer to pay. This is done by deducting the customer’s payment from the vendor’s invoice amount and then paying the vendor the net amount. This procedure helps to reduce the time it takes for vendors to receive payment and improves cash flow. 
  
  How to use it: 
  In order to use the vendor net procedure, you must first set up a vendor master record in SAP FI. This record will contain information about the vendor, such as their name, address, and payment terms. Once this is done, you can then set up a vendor net procedure in SAP FI. This will allow you to deduct the customer’s payment from the vendor’s invoice amount and then pay the vendor the net amount. 
  
  Tips & Tricks: 
  When setting up a vendor net procedure in SAP FI, it is important to ensure that all of the necessary information is entered correctly. This includes the customer’s payment terms, as well as any discounts or other deductions that may be applicable. Additionally, it is important to ensure that all of the necessary documents are attached to the vendor master record in order for the procedure to be successful. 
  
  Related Information: 
  For more information on setting up a vendor net procedure in SAP FI, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to set up a vendor net procedure in SAP FI.