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Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on either a specific day of a month, such as the 15th of the month, or a number of days added to your terms date, such as 14 days after the terms date.

Each payment terms line also defines the due or discount amount on a scheduled payment. When you define payment terms you specify payment amounts either by percentages or by fixed amounts.

Payables provides a predefined, unalterable payment term, called Prepayment Immediate, which Payables automatically assigns to all prepayments you enter.

After you define your payment terms, you can select default system payment terms that Payables automatically assigns to the suppliers and supplier sites you enter. The payment terms for a supplier site default to the invoices you enter for the site.

Attention: If you update the payment terms on an invoice, Payables recalculates the scheduled payment for the invoice. Thus, you must reenter any manual adjustments you made to the previous scheduled payment. For example, if you update the payment priority on a particular scheduled payment and then change the payment terms, Payables will recalculate the scheduled payment using the same payment priority defaults as before and you will need to redo your updates.

   To define payment terms:

1. In the Payment Terms window, enter a unique Payment Term name and a description. These will appear on a list of values whenever you select payment terms.

For detailed information on any field, see: Payment Terms Window Reference.

2. If you are entering Day of Month terms, enter a Cutoff Day.

3. If you enable Automatic Interest, enter a unique value in the Rank field.

4. If you want to invalidate this payment term after a certain date, enter that date in the Effective Date/To field.

5. Enter each payment terms line.

Enter one of the following to determine the portion of an invoice due on the scheduled payment:

• % Due.

• Amount.

In the Due region, enter one of the following to determine the due date on the scheduled payment line:

• Fixed Date

• Days

• Day of Month, and Months Ahead.

6. If you are using discount terms, define payment terms lines in the First, Second, and Third Discount regions. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.

Enter one of the following to determine the portion of the invoice to discount on the scheduled payment:

• % Discount.

• Amount.

In the Discount region, enter the discount percent.

Enter one of the following to determine the due date on the scheduled payment line:

• Due Days

• Day of Month, and Months Ahead.

7. Save your work.

See Also