In which segments of a customer or vendor master record can payment terms be entered?

Payment terms are established primarily at the company code segment of a customer or vendor master record in SAP. This is because the company code is intrinsically linked to the financial and accounting processes within a specific legal entity. By defining payment terms at this level, organizations can dictate specific conditions governing how payments should be managed, taking into account the various financial requirements and practices of that particular company code.

While other segments, such as the purchasing organization segment and sales area segment, relate to operational aspects of procurement and sales, respectively, they do not directly influence the financial arrangements associated with payment terms. For instance, payment terms affecting vendor invoices might be tailored to the policies of individual company codes rather than to specific purchasing organizations. Hence, entering payment terms at the company code segment ensures a consistent approach to financial transactions across the organization.

The client level segment generally does not handle payment terms as it deals with data applicable to all company codes and may include high-level customer information that doesn't vary based on financial policies or payment agreements. Therefore, the best practice in SAP Financial Accounting for entering payment terms is at the company code segment, aligning with financial management objectives.