Payment Term on Customer Order Line

Summary

The payment term on the order line is retrieved from the price origin, the discounts, or the order header according to a fixed hierarchy. You control whether or not the payment term on the order line is manually editable, or not even visible, via the order type field selection (OIS014/F).

The 'logistics' delivery (MWS410/MHDISH) accepts different payment terms on the same delivery, so there is no effect on the logistics side of the process. But at delivery (customer order status ends with the digit '6'), the order is split into several 'commercial' deliveries (OIS150/ODHEAD) if there are different payment terms. This is because there can only be one payment term per invoice and the commercial delivery is the basis for the invoice.

Sometimes the payment term is part of the commercial agreement regarding prices and discounts.

Customer Order Flow

Having multiple payment terms on a customer order affects the customer order process flow. In order to minimize the effects, the customer order is kept as one entity until the commercial delivery is created (OIS150/ODHEAD). There can only be one payment term on a commercial delivery, since it is the basis for the invoice, which can only have one payment term. Therefore, the customer order is split into several commercial deliveries if there are several payment terms. For this reason, the payment term is included in the unique key of the tables for the commercial delivery header and line (ODHEAD and ODLINE). From a user perspective this affects you when you work in 'CO Delivery. Open' (OIS150). Otherwise the only significant effect is that one customer order with several different payment terms on the order lines, that are logistically delivered together (MWS410/MHDISH), will give you one invoice per payment term.

The external documents Sales Quotation (QPS606PF) and Order Confirmation (OIS606PF, OIS608PF) print the payment term on each order line that has a different payment term than the one on the header. The total order amount per payment term is also printed at the bottom of the document.

Invoicing is performed as usual. Separate invoices are created based upon each combination of delivery number and payment term. The invoices can be viewed in 'CO Invoice. Display' (OIS350).

Payment Term Retrieval to the Order Line

The payment term and the payment term origin are displayed in 'Customer Order. Open Line' (OIS101/G). The payment term origin indicates where the payment term comes from. The origins are:

  • 1 = Promotion (price or discount)
  • 2 = Agreement (price or discount)
  • 4 = Discount Model
  • 5 = Price List
  • 7 = Customer Order Header
  • 8 = Manually Changed or Copied

The search priority when retrieving the payment terms to the order line is as follows:

  1. Which one of either promotion or agreement that is priority 1 and 2 depends on the price origin sequence (PRPMS) in 'CO Type. Open' (OIS010/I). The order of '9' (promotion) and '6' (agreement) determines whether the promotion or agreement has the highest priority.

  2. See above.

  3. Discount Model

  4. Price List

  5. Customer Order Header

Manually Changed or Copied - Payment Term Origin 8

If the payment term on the order line is editable according to the order type (OIS014/K), then it can be manually changed in 'Customer Order. Open Line' (OIS101/G). The payment term origin becomes 8 - Manual. The origin will also be 8 if the order line is created through copying and you selected to copy the price. If you do not select to copy the price, then the payment term is not copied either, but is searched according to the normal hierarchy.

Changing Payment Term on the Customer Order Header

It is possible to change the payment term on the customer order header when order lines exist. Then a dialog will appear that enables the user to decide how these changes should affect existing customer order lines:

Answering 'Yes' means that all lines are changed, provided the payment term origin is 7 or 8, no matter what payment term it is on the order line. Answering 'No' means that all the order lines that have the same payment term as the order header (before the change) are changed, provided the payment term origin is 7 or 8. Answering 'Cancel' means that no order lines are updated.

Kit Items

The whole kit must have the same payment term, because otherwise the commercial delivery will be split since a commercial delivery can only have one payment term. If the delivery is split, then the kit is split, which causes problems at invoicing.

Therefore there are some rules for kit items:

  • The kit lines will get the same payment term as the kit header if the pricing method on the kit is 1 or 2 (in 'Product Structure. Open' (PDS001/G)).
  • Both the kit header and the kit lines will get the payment term from the order header (OOHEAD) if the pricing method on the kit is 3 (in 'Product Structure. Open' (PDS001/G)). This is the only way to guarantee that all the lines get the same payment term.
  • The payment term is not editable on the kit lines.
  • If the payment term is changed on the kit header, then all kit lines will be updated with the same payment term.

Split the Logistics Delivery Based on Payment Term

Payment term (OBTEPY) is available in the field group MWKVH, which is used in 'Dispatch Policy. Open' (MWS010/I) to define user-defined fields used for delivery consolidation. If OBTEPY is defined as a delivery consolidation field, then there will be one logistics delivery per payment term.

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