Payment Terms

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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'.