Payment Terms
Payment Terms - need to know
Payment Terms are a key part of your Credit control policies. They can be applied to Sales and Purchasing Documents. Users can create and configure, or import Payment Terms.
Configure Payment Terms
Accounting>Payment Terms>+
User can vary the timing of the term:
Due in a number of days
Due next month (specify which day in month)
Due at the end of the month (i.e. last day of month of issue)
Due on issue date
Set date manually
Import Payment Terms
Setup>Import Data>Payment Terms
You can configure and set Payment Terms on the Customer and Supplier ‘Profile’. Transaction Documents i.e. Sales Orders and Sales Invoices inherit and apply these settings so as users can track and manage debtor and creditor balances.
Early payment discounts
Users can set the ‘discount within x days, and discount percentages.
Users can set up terms to reflect and automate the calculation and application of early payment discounts when users record payments in the system. Users can set where early payment discount entries are recorded in the general ledger.
Configure where payment discounts are posted to the general ledger
Set the Customer and Supplier Payment discount accounts:
Setup>Configuration>Accounting>Accounts>Default Accounts
Customer Payment Discounts
i.e. Income - Sales Discounts
Supplier Payment Discounts
Check with an accounting professional.
Configure where payment charges are posted to the general ledger
Set the Customer and Supplier Payment charge accounts:
Setup>Configuration>Accounting>Accounts>Default Accounts
Customer Payment Charges
Check with an accounting professional.
Supplier Payment Charges
Check with an accounting professional.
Set Payment Terms on Trading partner, e.g Customer
Go to: Trading Partner>Profile>Trading Information
Delete a Payment Term
You can only delete a payment term if it has not been previously used on a transaction. To delete the payment term open it from the list and click 'Delete'.
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