SAP Note 17271 - Net posting: cash discount taken at invoice time

Symptom:

system deducts discounts, in spite of late payment

Cause and prerequisites

is designed this way - additional training and explanation needed

Solution
Net posting (document type ins net) means that discounts are taken at invoice time and are distributed according your configuration and posting decisions. It also means that you have reduced the value of your material or asset accordingly and that you consider this to be the correct final price. The payment program as well as any manual payment is going to follow this principle and is going to ALWAYS take the cash discount, now matter how late the payment occurs. If the late discount results in a necessary refund to your vendor for the late payment you have to make a new entry to reflect this charge. The next posting run will then issue a check for the discount refund. There is no automatic process for this and the payment program cannot be configured to refrain from paying the reduced amount in the first place. Please notice that this has the benefit for you that the integration works correctly.
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a. The additional cash discount is an unexpected surcharge and can be shown as such. As it is a separate posting, you can choose to distribute or not to distribute back to the charged costcenter/asset etc., depending on what caused the late payment in the first place.
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b. The price of material, service etc. does not get distorted by a isolated late payment.

If the general procedure in your company is such that late payments are frequent, net payment (that is the aticipation of a reduced cost) is not for you. Please use gross document types then. This means that one cost center will receive the credit for timely pay, but it will certainly save you from many manual refund postings.