Proximate Date Payment Terms

Use proximate date payment terms when you want the transaction due date to be on the same date of the month regardless of the invoice date. 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:

• Proximate month of 1.

• Proximate day of 10.

You enter a transaction with an invoice date of May 20. The system calculates the due date as June 10. To specify a due date for the last day of the month, use a proximate month of 0 and proximate days of 31. The system uses the last day of the month regardless of the number of days in the month.

In addition to specifying the proximate month and day, 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, and adds the discount days to the invoice date to calculate the discount due date.

Assume that you set up a payment term code for:

• Discount of 1 percent.

• Discount days of 10.

• Proximate month of 1.

• Proximate days of 10.

You enter a transaction with an invoice date of June 14. The system calculates a discount due date of June 24 and a net due date of July 10. The customer has until June 24 to remit their payment to receive a 1 percent discount; otherwise, the payment is due July 10.