Payment Terms

Pgm: TERM – AP and AR Terms Code Maintenance

This program is used to define codes for payments terms for use in both the Accounts Receivable (AR) and Accounts Payable (AP) sub-ledgers. Payment terms are unique by company.  Common payment terms associated with invoices include COD, Net due 30 days, Net due on receipt, etc.  A six-character code defined here identifies each payment term and that code will be required for entry when setting up both vendors and customers.

Selection Criteria

The first section is for entering the company code for which the codes being defined in the second section will apply. 

Company

Enter/select the company code for which to define terms.

Term Detail

Terms codes must be defined for each company set up on the system.  This section is used for setting up the terms codes that will be used by the company specified in the Selection Criteria section.

Code (Term Code)

Enter up to a 6-character code for the term code.  This code will be specified when setting up new customers in AR or new vendors in AP, and will determine the standard payment conditions for invoices (i.e. Cash on Delivery, Net due on Receipt, Net due 30 days, etc.).  A term code must be entered for each payment term defined on this screen.

Name

Enter a description of this payment term.  This name will appear on most screens that require the entry of a payment term.

Control Start Date

Enter/select the code to determine the day that will be used as the start date when calculating the Payment Terms.  There is a predefined set of values for this field. The default for this field is “NA”.

HM - Not Including this half month
NA - Control Not Applied
NM - Not Including this Month
NT - Not Including Today
NW - Not Including this Week
SD - Specify the Number of Days

This control field is used in conjunction with an invoice date to determine the base date from which to calculate the due and discount dates according to the data in the Days until Due field and the Discount Days field.

Due Day in Month

Enter the day of the month that invoices for vendors or customers with this code are normally due.  If "15" is entered here, then the due date for invoices entered will default to the 15th of the current month if this term code has been set up for the vendor or customer whose invoice is being entered.  A valid number between 0 and 31 can be entered here.

Leave this field blank if the due date for invoices will be determined by the invoice date (see the Days Until Due field).

NOTE: The Due Day in Month field and the next field, Days Until Due are mutually exclusive entry fields.  They both cannot be left blank and they both cannot be filled in.  One method of defaulting the due date on invoices must be selected.

Days Until Due

Enter the number of days until invoices being entered for customers or vendors with this term code will be due for payment, starting from the date of the invoice.  The due date will default to the Invoice Entry screen by adding the number of days entered in this field to the invoice date entered on that screen.  If "30" is entered in this field, all invoices for all vendors or customers who are set up with this code will have a default due date of 30 days past the invoice date entered.

A valid number between 0 and 999 can be entered in this field.  Leave this field blank if the due date will default based on the day of the month (see Due Day in Month field).

NOTE: Data entry in this field and the previous one are mutually exclusive. Both fields cannot be left blank and both fields cannot have data entered. Enter information only in that field which will approximate and default due dates in the most desirable fashion.

Discount Day In Month

Enter the day in the month up to which the discount is applicable.

Discount Days

Enter the number of days after the invoice date that the customer or vendor invoices are eligible for TERM (or early payment) discounts.  When invoices are entered for vendors or customers who have been set up with this term code, the system add the number of days specified here to the invoice date entered and correctly display the date that TERM DISCOUNT eligibility ends.  Any number of days between 0 and 999 may be entered here.

If this field is left blank, the system will assume 0 days for this code.

Discount Percentage

Enter the percentage for the TERMS (early payment) discount.  For invoices of vendors and customers who are set up with this term code, the percentage entered in this field will default to the Invoice Entry screen, and the amount of discount will be automatically calculated based on the percentage entered.  A valid percentage between 0 and 100 can be entered in this field.

If this field is left blank, the system will assume a percentage of 0.

Retainage Percentage

Enter the percentage of retainage to be associated with the term code being defined.

Sample of Start Date Control Functions

NOTE: Rows in bold are invalid combinations.

		Day in Month	Days Until	Invoice Date	Calculated Due Date
HM	Not Including this Half Month	7		Jan 01/18	Feb 07/18
		7		Jan 31/18	Feb 07/18
			7	Jan 01/18	Jan 23/18
			7	Jan 31/18	Feb 08/18
NM	Not Including this Month	7		Jan 01/18	Feb 07/18
		7		Jan 31/18	Feb 07/18
			7	Jan 01/18	Feb 08/18
			7	Jan 31/18	Feb 08/18
NT	Not Including Today	7		Jan 01/18	Feb 07/18
		7		Jan 31/18	Feb 07/18
			7	Jan 01/18	Jan 09/18
			7	Jan 31/18	Feb 08/18
NW	Not Including this Week	7		Jan 01/18	Feb 07/18
		7		Jan 15/18	Feb 07/18
		7		Jan 31/18	Feb 07/18
			7	Jan 01/18	Jan 14/18
			7	Jan 31/18	Feb 11/18
NA	Control Not Applied	7		Jan 01/18	Feb 07/18
		7		Jan 31/18	Feb 07/18
			7	Jan 01/18	Jan 08/18
			7	Jan 31/18	Feb 07/18

Valuation Payment Setup

The details in the Valuation Payment Setup section are used to support Self Billing Payment Request functionality for UK clients, which is a functionality that requires a System Alternate Feature enabled.