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## 3.8.1 Create Payment Terms

This topic describes the systematic instruction to create a payment term for a buyer.

Newly created payment terms take effect once authorized.

1. On Home screen, click Receivables and Payables. Under Receivables and Payables, click Maintenance.
2. Under Maintenance, click Payment Terms. Under Payment Terms, click Create Payment Terms.
   The Create Payment Terms screen displays.

   Figure 3-48 Create Payment Terms

   Description of "Figure 3-48 Create Payment Terms"
3. Specify the fields on Create Payment Terms screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 3-26 Create Payment Terms - Field Description

   Field | Description
   --- | ---
   Filter Criteria | Select the appropriate filter criteria for specific application of payment terms.
   Program | Click the Search icon and select the program. This field is displayed only if the Filter Criteria is selected as Program.
   Spoke | Click the Search icon and select the spoke. This field is displayed only if the Filter Criteria is selected as Spoke.
   Relationship Code | Click the Search icon and select the relationship code. This field is displayed only if the Filter Criteria is selected as Relationship.
   Counterparty Id | Click the Search icon and select the counterparty id. This field is displayed only if the Filter Criteria is selected as Counterparty.
   Party | Click the Search icon and select the party. This field is displayed only if the Filter Criteria is selected as Party.
   Frequency of Payments | Select the frequency of the payment as monthly, weekly, or custom.
   Days of the Month | Select the days of the month on which payment is expected. This field is displayed only if the Frequency of Payments is selected as Monthly.
   Days of the Week | Select the days of the week on which payment is expected. This field is displayed only if the Frequency of Payments is selected as Weekly.
   Payment Date Calculation Basis | Select the any one of the following to calculate the payment date. Invoice Date + Minimum Tenor Invoice Due Date Invoice Due Date + Minimum Tenor
   Minimum Credit Period | Specify the number to define the minimum tenor for the invoice.
   Holiday Treatment | Select the value to specify payment due date should be moved to next/previous day in case it falls on holiday.
   Payment Schedule grid | Displays the fields to specify the custom payment schedule. This field is displayed only if the Frequency of Payments is selected as Custom.
   From Day | Select the start date of the duration as per selected entity for Payment Date Calculation Basis field.
   To Day | Select the end date of the duration as per selected entity for Payment Date Calculation Basis field.
   Payment Day | Select the specific day of the month for payment against the specified From Day and To Day fields.

4. Click Add icon to add a row of schedule.
5. Perform the following steps to add customer frequency of payment.
   - Click Edit icon to modify the details.
   - Click Delete icon to remove that specific row.
6. Click Save to save the record and send it for authorization.

Parent topic: Payment Terms Maintenance