Terms are used to determine payment terms for customer as well as vendor invoices.
When you enter a Sales Order, the terms for that invoice will be taken from the Customer Main Data File by default. You can, however, override this for that particular invoice by entering another valid ID into the Order Header Window.
When you enter a vendor bill, the terms for that invoice will be taken from that Vendors Main Data File by default. You can, however, override this for that particular bill by entering another valid ID into the Vendor Invoice header.
Fields
| DESCRIPTION | The description of this record which appears on forms. |
| ID | This ID can be any eight digit alphanumeric ID. For example:
CASH CASH COD COD 210 2% 10 DAYS NET 30 DAYS NET 30 DAYS |
| USER DEFINED | Checking this box permits the user to determine their own Due Date for a Customer Invoice or Vendor Bill. |
| ITEMS DUE ON THIS DAY OF THE MONTH | Checking this box changes the behavior of the following three fields to allow for vendors who wish to be paid by a particular day of the month rather than within a range of days. |
| DAYS TO PAY/ DAY OF MONTH DUE | If ITEMS DUE ON THIS DAY OF THE MONTH is not checked (the default), this is the number of days the customer has to pay when this Terms ID is used. In the case of Vendor Bills, this is the number of days you have to pay the vendors bill from the vendors invoice date.
However, if ITEMS DUE ON THIS DAY OF THE MONTH is checked, this is the day of the month on which vendor invoices are due. This will always be considered the day of the month of the month after the vendor invoice date. In other words, if the vendor invoice date is 09/23/99, and this field is set to 20, then the vendor invoice due date would be 10/20/99. IF ITEMS DUE ON THIS DAY OF MONTH is checked, this Terms ID should not be used for Customer Invoices. |
| 2ND DAY OF MONTH | In the case of Vendor Bills, if ITEMS DUE ON THIS DAY OF THE MONTH is checked, this is the second day of the month on which vendor invoices are due. This will always be considered the day of the month of the month after the vendor invoice date. In other words, if the vendor invoice date is 09/23/99, and this field is set to 25, then the vendor invoice due date would be 10/25/99.
This field only applies to Vendor Bills. If ITEMS DUE ON THIS DAY OF MONTH is checked, this Terms ID should not be used for Customer Invoices. |
| DAYS TO DISCOUNT | If ITEMS DUE ON THIS DAY OF THE MONTH is not checked (the default), this is the number of days after invoicing when the discount percentage applies for both customer invoices and vendor bills.
If ITEMS DUE ON THIS DAY OF THE MONTH is checked (Vendor Bills only), this is the cut-off day of the month to take vendor invoice discounts. This will always be considered the day of the month of the month after the vendor invoice date. In other words, if the vendor invoice date is 09/23/99, and this field is set to 10, then the last day for paying the vendor invoice and take a discount would be 10/10/99. This field only applies to Vendor Bills. If ITEMS DUE ON THIS DAY OF MONTH is checked, this Terms ID should not be used for Customer Invoices. |
| DISCOUNT % | The percentage of discount applied to this invoice if credited within the Days to Pay period. Note that you may override any discount when payment is received in A/R|Customer Payments. |
| COMMISSION % | This field is only used if your company incorporates the customers Terms ID when calculating sales commissions. Entering a percentage here, will add to, or reduce the commission on the sales persons orders by this percentage of gross profit. If you do not factor Customer Terms into calculating commissions, you should leave this field blank. |
