{"id":11325,"date":"2017-04-21T14:00:00","date_gmt":"2017-04-21T14:00:00","guid":{"rendered":"https:\/\/zapliance.com\/?p=11325"},"modified":"2022-08-26T14:05:27","modified_gmt":"2022-08-26T14:05:27","slug":"are-you-failing-to-benefit-from-cash-discounts-due-to-poorly-maintained-payment-terms-in-sap","status":"publish","type":"post","link":"https:\/\/zapliance.com\/en\/blog\/are-you-failing-to-benefit-from-cash-discounts-due-to-poorly-maintained-payment-terms-in-sap\/","title":{"rendered":"Are you failing to benefit from cash discounts due to poorly maintained payment terms in SAP"},"content":{"rendered":"\n

Deducting cash discounts for incoming invoices is one of the easiest ways to save costs in the company. For this to work successfully, payment terms must be maintained correctly and promptly in SAP. In this four-part blog series, I would like to show you how to analyze payment terms using data analyses to investigate whether discounts are not being used.<\/p>\n\n\n\n

Part I of the series: \u201cPayment terms in vendor master data\u201d<\/strong><\/p>\n\n\n\n

1. Are you failing to benefit from cash discounts due to poorly maintained payment terms in SAP?<\/strong>
2. Two steps to analyze bad payment terms in SAP<\/a>
3. Revised terms of payment: How to clean up your vendor master data<\/a>
4. How to analyze your own payment behavior in SAP<\/a><\/p>\n\n\n\n

Just a few percent?<\/h2>\n\n\n\n

One or two percent discount does not sound like much, right?<\/p>\n\n\n\n


Right.<\/p>\n\n\n\n


But as every business owner knows: There can be no better form of \u201cfinancial investment\u201d than making use of cash discounts as a form of supplier credit.<\/p>\n\n\n\n


Why?<\/p>\n\n\n\n

Because the one or two percent discount is not being offered over one year, but over a period of just a few days, often 20 or 30 days. Now calculate how much that is worth over a whole year! In times of low interest rates, that\u2019s better than any other form of investment you can think of.<\/p>\n\n\n\n


But in larger companies, where you may be dealing with hundreds or thousands of invoices, it is important to keep track of things and ensure you pay on time.<\/p>\n\n\n\n

So how do you go about making sure this happens? In the master data, the payment terms of your vendors should be maintained properly, so that the payment can enter the payment run automatically and cash discount can be used. 
 
After studying this blog series, you will know:<\/p>\n\n\n\n