SAP Knowledge Base Article - Public

1579615 - The Cash Discount of Supplier Invoice is Not Posted to the Desired Account

Symptom

In the line item of the supplier invoice XYZ, Cash Discount Relevant checkbox is ticked. You then post the supplier invoice to accounting, and have it cleared. But when you check the journal entry of the payment, you feel the cash discount is not posted to the right account.

Reproducing the Issue

  1. Go to the Business Configuration work center, and choose the Implementation Projects view.
  2. Select the project in question and choose Open Activity List.
  3. Navigate to the Fine-Tune step.
  4. Open the fine-tune activity Charts of Accounts, Financial Reporting Structures, Account Determination.
  5. Under Account Determination, choose Accounts Payables.
  6. Go to the Payment Differences tab.
  7. You can see that for all supplier groups, account ABC is maintained under the Cash Discount Earned column.
  8. Then, go to the General Ledger work center, choose the Journal Entries view.
  9. Select the journal entry of the payment, and check the details.

      You can see the posting of the payment credits the cash discount to an expense account DEF , which is not ABC as you expect.

Cause

When you pay a supplier invoice, the cash discount is posted using the gross procedure. The input tax is corrected automatically for the payment date of the invoice. How cash discounts are posted depends on whether they are combined with a goods receipt: 

  1. Invoice receipt with goods receipt: The cash discount is not posted until GR/IR clearing is performed.
  2. Invoice receipt without goods receipt: The cash discount is posted to the original account in the journal entry for the supplier invoice, that is, to the expense account or to the fixed asset. 

As in this case, there is no goods receipt associated, so when you pay the supplier invoice, the cash discount is posted to the expense account in the journal entry of the supplier invoice XYZ.

In the supplier invoice XYZ, the cost is distributed to G/L account DEF, so after the posting of the supplier invoice, the system credits the payable account and debits the expense account DEF. This is why the system posts the cash discount to expense discount DEF.

Keywords

KBA , SRD-FIN-ACR , Receivables , How To

Product

SAP Business ByDesign all versions