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09-Aug-2017 10:09

Payment term codes can range from simple to complex, depending on your organization's policies.

You define a payment term by using a one-, two-, or three-character combination of these types of characters: For example, you might use A1%, which combines all three types of characters, for a percentage payment term code.

Use fixed payment terms when you want to specify a due date instead of having the system calculate the due date.

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In addition to specifying the proximate month and day, you can specify the discount percent and the discount days.Use net payment terms to specify the due date of the transaction by adding some number of days to the invoice date of the transaction.Assume that you specify net 30 days to pay and you enter a transaction with an invoice date of June 14. In addition to specifying the net days to pay (or due date), you can specify the discount percent and the discount days.You specify the number of months to add to the invoice date and the date in that month on which the transaction is due.

Assume that you set up a payment term code for: You enter a transaction with an invoice date of May 20. To specify a due date for the last day of the month, use a proximate month of 0 and proximate days of 31.You specify the net days to pay, the number by which you want to divide the transaction, and the days to pay aging.The system uses the net days to pay to calculate the due date of the first payment, and the days to pay aging to calculate the due dates for the second and subsequent payments.For example, you can instruct the system to: Before you set up advanced payment term codes, you must define the rules that the system uses to calculate due dates for invoices and vouchers.



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