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Oracle U.S. Federal Financials Implementation Guide
Release 12.1
Part Number E13455-04
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Payment Terms Types Setup

Overview

The Define Payment Terms Types window specifies payment terms for the Due Date Calculation process. The payment term automatically calculates the payment due date in compliance with the Prompt Payment Act.

The Prompt Payment Act requires federal agencies to calculate the payment due date of a vendor invoice by using the later of the date the invoice was received or the date goods or services were accepted by the agency. The payment period begins with the date selected.

Payment Terms Types are required to run these features:

The Terms Type option, specified in the Define Payment Terms Types window, is required for Due Date Calculation and for compliance with the Prompt Payment Act.

The Payment Terms Type also defaults to purchase orders and invoices generated for a specific vendor.

Note: If Prompt Pay is not selected as the Payment Terms Type, invoices are not included in the due date calculation, and the Terms Date Basis in the standard Payables is used as the due date.

Prerequisites

Before setting up payment terms types, you must:

Related Topics

Define Payment Terms

Define Payables Options

Defining Payment Terms Types

To define payment terms options, navigate to the Define Payment Terms Types window.

The following table describes selected fields on the Define Payment Terms Types window

Define Payment Terms Types Window Description
Field Name Description
Name Name for the Payables terms type
Description Description of the Payables terms type
Terms Type Payment terms types
Description Description of the payment terms type
Constructive Acceptance Days Number of days to accept goods or services after receipt of goods or services
Invoice Return Days Number of days to return invoice when defective supplier invoices are returned