What is terms of payment in SAP LO - Logistics - General?

SAP Term: terms of payment

• Component: LO

• Component Name: Logistics - General

• Description: Arrangements made with a business partner for financial settlement with respect to goods supplied and services performed. &EXAMPLE& Stipulation of down-payment advance payment Cash on delivery Payment following delivery, for example, clauses "immediate payment in cash," or "on a cash basis," or stipulation of a period for payment Combined conditions, for example, the clause "payable in 30 days net without deduction or within 10 days with 2% discount"

Smart SAP Assistant

• Key Concepts: 
  Terms of payment in SAP are the conditions under which a customer pays for goods or services. This includes the payment method, payment terms, and payment period. The terms of payment are set up in the customer master record and can be used to determine the credit limit for a customer. 
  
  How to use it: 
  In SAP, terms of payment are set up in the customer master record. This is done by entering the payment method, payment terms, and payment period. The payment method can be cash, check, credit card, or bank transfer. The payment terms indicate when the customer must pay for the goods or services. The payment period indicates how long the customer has to pay for the goods or services. 
  
  Tips & Tricks: 
  When setting up terms of payment in SAP, it is important to ensure that the customer’s credit limit is not exceeded. This can be done by setting up a credit limit in the customer master record and ensuring that all invoices are paid within the specified payment period. 
  
  Related Information: 
  For more information on setting up terms of payment in SAP, please refer to SAP Help documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up terms of payment in SAP.