Net Payment Terms

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. The system calculates the due date as July 14.

In addition to specifying the net days to pay (or due date), you can specify the discount percent and the discount days. The system multiplies the gross amount by the discount percent to calculate the discount available. It then adds the discount days to the invoice date to determine the discount due date.

Assume that you set up a payment term code for:

• Discount of 1 percent.

• Discount days of 10.

• Net days to pay of 30.

You enter a transaction with an invoice date of June 14. The system calculates the discount due date as June 24 and the net due date as July 14. The customer has until June 24 to remit their payment to receive a 1 percent discount; otherwise, the payment is due July 14.