What is 'lost cash discount' in SAP SRD-SRM-SI - SRM-Supplier Invoicing?

lost cash discount - Overview

• Component: SRD-SRM-SI

• Component Name: SRM-Supplier Invoicing

• Description: The cash discount that was not received because an invoice was not settled during the time frame specified by the supplier.

lost cash discount - Details

• 
  Key Concepts: 
  Lost cash discount is a term used in SAP Supplier Invoicing to refer to the amount of money that a supplier has lost due to not taking advantage of a cash discount offered by the customer. This amount is calculated by subtracting the amount of the cash discount from the total invoice amount. 
  
  How to use it: 
  In SAP Supplier Invoicing, lost cash discount is calculated automatically when an invoice is created. The system will subtract the amount of the cash discount from the total invoice amount and display the resulting lost cash discount amount. 
  
  Tips & Tricks: 
  It is important to keep track of lost cash discounts in order to ensure that suppliers are not losing out on potential savings. Additionally, it is important to ensure that suppliers are aware of any cash discounts offered by customers so that they can take advantage of them. 
  
  Related Information: 
  Lost cash discounts are closely related to payment terms, which are used to determine when a customer must pay an invoice. Payment terms can also be used to determine when a customer must take advantage of a cash discount in order for the supplier to receive the full amount due.