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This document is to introduce the cash discount net procedure briefly.


There are 2 different procedures when receiving cash discount from vendor:

  1. Net procedure  
    System will calculate cash discount at the time of invoice posting and the same is realized at the time of making payment. If the payment is overdue, the amount of discount lost will be shown as an expense.
  2. Gross procedure
    System will calculate cash discount at the time of payment posting.

I will introduce the net procedure in detail since gross procedure is easy to understand.

Configuration for net procedure:

Document type, we use document “KN” as default document type of net procedure. You can also use another one, but it is necessary to check flag “net document type” in OBA7.

  • Configure cash discount clearing account (SKV)
  • Configure lost cash discount account (VSK) 

Balance result for different scenarios in net procedure:

vendor invoice

Payment posting 

  • Payment with the case discount period

  • Payment after deadline

The following is the real exmaple:
1.Post vendor invoice:

 2. Clearing it in F-53



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1 Comment

  1. Former Member

    Hi, I doubt the posting to the expense (980) is incorrect. It should be 1000 under any condition in my thinking. I have different idea on the posting of net method considering the Tax requirement from government, could you please check if SAP configuration can fulfill it:

    (Ignore the VAT which should be calculated based on the original total expense, not the net expense in China)

    1. when receive invoice, the posting will be like:
      Dr. Expense (or GR/IR)                             1000
      Dr. Cash Discount Accrual                            20
    2. Cr. Vendor                                                 100
      Cr. Cash Discount Clearing                          20
        2.1. When payment with discount
                Dr. Vendor                                   1000
                  Cr. Bank                                         980
                    Cr. Cash Discount Accrual              20

    Then finally there is balance in Cash Discount Clearing account and it can be manual repost to the other expense account (e.g. Finance Charge) to deduct the expense for the enterprise or just leave it and reflect to the P&L (e.g. Finance Expense item)

    2.2 If the payment with losting discount

    Dr. Vendor 1000

    Dr. Cansh Discount Clearing 20

    Cr. Bank 1000

    Cr. Cash discount accrual  20

    Then no balance of Cash Discount and Accrual