2651325 - Supplier Cash Discount Posted to Original Expense Account- Supplier Innvoice with Purchase Order/ Goods Receipt

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2651325 - Supplier Cash Discount Posted to Original Expense Account- Supplier Innvoice with Purchase Order/ Goods Receipt

Symptom

You create a Supplier Invoice XYZ (XYZ represents the Supplier Invoice ID) from Purchase Order item XXX-XX (XXX-XX represents the Purchase Order Item ID) for a non-stock material acquisition after the Goods receipt has been posted.
The Supplier invoice gets cleared with a payment including a cash discount, either due to the applied payment terms or because a cash discount was maintained manually.
You notice that the Goods Receipt/ Invoice Receipt (GR/IR) Clearing run has posted the applied cash discount to the original expense account derived from the Purchase order item Product Category.
You expected the cash discount to be posted to a Difference account maintained in the Account Determination fine tune activity, section Accounts Payable.

Environment

SAP Business ByDesign

Reproducing the Issue

Pre-conditions:

  • In the Fine Tune activity Charts of Accounts, Financial Reporting Structures, Account Determination under Account Determination - Accounts Payable in the Payment Differences tab you have maintained a G/L account in column Cash Discounts Earned.
  • The Supplier Invoice has been paid with a cash discount.

Steps to reproduce:

  1. In the Inventory Valuation work center go to the GR/IR clearing view.
  2. Select the relevant GR/IR clearing run and then enter its application log by clicking on Log Result in the Details section.
  3. Navigate to the Processed Successfully tab.
  4. In the Only Posting Information or the Advanced Information sub-tab search for item XXX-XX in the Purchasing Document Item column.
  5. In the Details section, under Offsetting Account, you notice that a Payment Difference, according to the applied cash discount, has been posted to the original Expense account rather than a payment difference account for payables.

Cause

In general, the cash discount posting depends on whether they are combined with a goods receipt.

  1. Invoice receipt with goods receipt: The cash discount is posted through the GR/IR clearing activity.
  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.

This posting logic is controlled by the settings maintained in the fine tune activity Posting Control Profiles for Procurement Processes.

However, it is possible to set up the posting control in a way that cash discounts are posted to a specific payment difference account maintained in the mentioned Account Determination activity.

Resolution

Create a new posting control profile for procurement processes and assign it to the respective accounting principles:

  1. In the Business Configuration work center open the Fine Tune activity Generally Accepted Accounting Principles (either with a change project or from the Implementation Projects view and here in the Fine Tune phase).
  2. You might have to add this activity to the project - Choose Add to Project and then choose Open.
  3. In the new window first go to the Posting Control Profiles for Procurement Processes task.
  4. To create a new posting control profile copy the General Posting Profile: Choose Copy, change the Posting profile ID and the profile description.
  5. In the sub-tabs underneath you can maintain the payment difference posting settings for three procurement options: Procure for Consumption, Procure to Stock, Procure to Fixed Assets.
  6. If you do not want cash discounts to be posted to the original expense account, navigate, for instance, to the Procure for Consumption tab and  select 1-Cash Discount.
  7. Untick the box in the Post to Original Expense Account column.
  8. Press Save and Close.
  9. Now open the task Generally Accepted Accounting Principles
  10. In the new window you can assign the new Posting Control Profile to the respective accounting principles.
  11. Press Save and Close.

If you now create a supplier invoice, even without goods and service receipt, then the cash discount maintained in the payment clearing will be posted to the cash discount account that you have maintained in the Account Determination activity in Fine Tuning.

See Also

1816316-Supplier Cash Discount Posted to Original Expense Account

Keywords

cash discount, original expense account, payment difference account, accounts payable, procurement for consumption, outgoing payment clearing, supplier invoice with purchase order , KBA , cash discount , supplier invoice with purchase order , cash discount gr/ir clearing , SRD-FIN-INV , Inventory , Problem

Product

SAP Business ByDesign all versions