What is 'offset method' in SAP MM-PUR - Purchasing?

offset method - Overview

• Component: MM-PUR

• Component Name: Purchasing

• Description: Controls how you offset your invoices for chargeable components against the subcontractor's deductible accounts payable.

offset method - Details

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  Key Concepts: 
  The offset method in SAP MM-PUR Purchasing is a payment method used to settle invoices. It involves the vendor providing a discount on the invoice amount in exchange for an immediate payment. This method is often used when the vendor needs cash quickly and is willing to accept a lower amount in exchange for it. 
  
  How to use it: 
  In SAP MM-PUR Purchasing, the offset method can be used to settle invoices. To do this, the vendor must provide a discount on the invoice amount. This discount will be applied to the invoice amount and the remaining balance will be paid immediately. The vendor will then receive the discounted amount as payment. 
  
  Tips & Tricks: 
  When using the offset method in SAP MM-PUR Purchasing, it is important to ensure that the vendor is aware of the discount they are providing and that they are willing to accept it. Additionally, it is important to ensure that all necessary paperwork is completed correctly and that all payments are made on time. 
  
  Related Information: 
  The offset method is just one of many payment methods available in SAP MM-PUR Purchasing. Other payment methods include cash payments, credit card payments, and bank transfers. Additionally, there are various other features available in SAP MM-PUR Purchasing such as invoice verification and goods receipt processing.