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Payment Terms

Last Updated: Aug 19, 2020

Payment Terms are configured in Setup / Finance / Dunning Process / Payment Terms

Overview

Payment terms allow you to define how invoice due dates are set. Payment terms are required in order to setup accounts receivable terms (AR terms). AR terms are selected when creating accounts in order to specify the invoice due dates and dunning rules that apply to the account.

Prerequisites

Payment terms can be setup as needed, there are no prerequisite configuration steps.

The Payment Terms Panel

The Payment Terms panel on the left of this screen allows you to select existing payment terms to view and edit on the Edit Payment Term panel to the right. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.

Actions

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Description

Allows you to delete a payment term. Payment terms which are in use (configured on AR Terms) cannot be deleted

Adds a new payment term

The Edit Payment Term Panel

The information in this panel reflects the currently selected payment term. From here you can change payment term details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).

Payment Term Fields and Options:

  • Name: a descriptive label to describe the payment term. E.g. 'Net 20', 'On Due Date', 'Due on 1st', etc.

  • Payment Term Type: the type specifies how the payment due date will be determined. The options are listed below

    • Day of Month: specifies a particular day that payment is due. The 'Day of Month' field will appear when this option is selected allowing you to enter the due day (a value from 1 to 28 is permitted in this field). If you set the day to '10' and the customer's invoice is posted on Oct 1st then payment for the customer will be due on Oct 10th. If the day is 10 and the customer's invoice is generated on Oct 11th, then payment will be due on Nov 10th

    • Net: allows you to set the number of days after the invoice render date/account bill date that the invoice is due (the starting date used is determined by the bill group setting 'Invoice Due Date Based On'). When 'Net' is selected an additional field called 'Term' will appear allowing you to enter a value from 1 to 365. If you set the Term to 20 then payment will be due 20 days after the invoice render date/account bill day (which starting date used depends on the invoice due date configuration in the account's bill group)

    • On Due Date: indicates that payment is due on the invoice due date. The invoice due date is determined by bill group settings