Split Payment Terms

Use split payment terms when you want the system to divide the transaction evenly into multiple payments with different due dates and the number of days between the second and subsequent payments is constant.

You specify the net days to pay, the number by which you want to divide the transaction, and the days to pay aging. The system uses the net days to pay to calculate the due date of the first payment, and the days to pay aging to calculate the due dates for the second and subsequent payments.

Assume that you set up a payment term code for:

Net days to pay of 20.
Split payments of 4.
Days to pay aging of 30.

You enter a voucher with an invoice date June 14. The system divides the voucher into four payments and calculates these due dates:

For the first payment, the due date is July 4 (20 days from the invoice date).
For the second payment, the due date is August 3 (30 days from the due date of the first payment).
For the third payment, the due date is September 2 (30 days from the due date of the second payment).
For the fourth payment, the due date is October 2 (30 days from the due date of the third payment).
Note: You do not see the effects of the split until you complete the entry process for the transaction and then re-inquire on it.
In addition to specifying the split payment term, you can specify the discount percent and the discount days. The system calculates the discount available for each payment. You specify the information for the split payment term, as well as the discount percent and the number of days to add 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.
Net days to pay of 20.
Split payments of 3.
Days to pay aging of 30.

You enter a transaction for 3,000 USD with an invoice date of June 1. The system calculates these dates for each payment:

Payment	Gross Amount	Discount Amount	Discount Due Date	Due Date
001	1000	10	June 11	June 21
002	1000	10	July 11	July 21
003	1000	10	August 10	August 20

The system performs soft rounding on amounts that do not divide equally.