What is cash discount terms in SAP TM - Transportation Management?

SAP Term: cash discount terms

• Component: TM

• Component Name: Transportation Management

• Description: The subtraction of a certain amount typically expressed as a percentage of the total amount as cash discount when making payment within a specified period.

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• Key Concepts: 
  Cash discount terms are used in SAP Transportation Management (TM) to define the conditions under which a customer can receive a discount for paying an invoice early. This includes the amount of the discount, the payment period, and any other conditions that must be met in order for the customer to receive the discount. 
  
  How to use it: 
  In SAP TM, cash discount terms are set up in the system and can be assigned to customers. When creating an invoice for a customer, the system will automatically apply the cash discount terms associated with that customer. The customer will then be able to take advantage of any discounts available if they pay within the specified payment period. 
  
  Tips & Tricks: 
  It is important to ensure that cash discount terms are set up correctly in SAP TM. This will ensure that customers are able to take advantage of any discounts available and that invoices are paid on time. Additionally, it is important to review cash discount terms regularly to ensure they are up-to-date and still relevant. 
  
  Related Information: 
  Cash discount terms are closely related to payment terms, which define when an invoice must be paid by and any penalties associated with late payments. It is important to understand both cash discount terms and payment terms in order to ensure invoices are paid on time and customers are able to take advantage of any discounts available.