Payment Terms and Reference Data Sharing

Payment terms are enabled for reference data sharing using the method of assignment to multiple sets, no common values allowed. The predefined reference group is called Payables Payment Terms and the determinant type for the reference group is business unit.

Before you can use a payment term, you must assign the payment term to a reference data set.

This figure provides an example of how the payment terms Net 45 and Net 30 are shared across different business units.

This graphic displays the Payment terms set assignment.

The Net 45 payment term is assigned to the North America reference data set. The North America reference data set is assigned to the United States and Canada business units. Invoices for these business units can then use the Net 45 payment term. The Net 30 payment term is assigned to the North America and Europe reference data sets. The Europe reference data set is assigned to the France business unit. Invoices for the United States, Canada, and France business units can use the Net 30 payment term.

Setting up Payment Terms for Reference Data Sharing

The setup for payment term reference data sharing includes:

Assigning a reference data set to a business unit: When you define a business unit, assign the business unit a reference data set for the Payables Payment Terms reference group.
Generating a data role for a reference data set: To assign a reference data set to a payment term, you must first generate a data role for that reference data set. Generate the data role using the predefined data role template called Financials Common Module Template for SetID.
Provisioning a data role to the implementor: Assign the reference data set data role to the implementor who creates the payment terms.
Creating a payment term: Assign one or more reference data sets to a payment term in the Set Assignment section on the Create Payment Terms page.

Tip: Before you define common options for Payables and Procurement, you must assign the Immediate payment term to the reference data set for the business unit.

Note: You can assign a payment term to the predefined common set, which works like any other set. Unless you assign the payment term to other reference data sets, that payment term is available only to the business units with the common set.