Payment term: Explanation on fields

Terms of payment involves the time frame in which we pay to customers and discount rates. The configuration of terms of payments is the same for both AR and AP. The same terms of payment can be used by both Customers and Vendors. Payment terms are created at the client level and can be used across any company code.

The explanation of fields in payment terms new entry screen are as follows:

Payment terms: A four digit alpha-numeric identifier for payment term key.

Sales Text: This is the short text explanation of payment term. The entry is limited to 30 characters.

Day Limit: This field is valid only if the payment terms depend on the day of the month. For Example, The field has numeric 10 added. This means ,any invoice, billed on or before the 10^th of the month is due on the 25^th of the same month and any invoice billed after the 10^th of the month is due on 5^th of the next month.

Own Explanation:This field is used for the detailed explanation of the payment terms. This field should be used only if the system generated explanation to be overridden.

Customer: The indicator is selected if the payment term is to be used for Customer accounts (AR Module)

Vendor: The indicator is selected if the payment term is to be used for Vendors accounts (AP module)

Fixed Day: This field is used to override the system generated baseline date. Any calendar day can be added which will overwrite the system generated baseline date and be used as this date as baseline date

Additional Months: This field is used in conjunction of Fixed day field. The field is added with number of additional months to be used with the proposed fixed date as baseline date. The baseline date becomes the combination of the fixed day field and additional months field.

Block key: This field is used when the payment term propose a block key-which blocks goods issue for delivery A/R or A/P

Payment method: The field usage is to specify a specific payment method with this term of payment.

Default for Baseline Date: Select the radio button that corresponds to the baseline date we want to use when using this term of payment. You can choose between No Default, Document date, Posting date(the date that the document posts in the system, it can vary from document date or can be same),or Entry Date(The system prompts you for the baseline date when the document is entered)

Percentage: The percentage rate that is used for discount

No. Of days: Enter the number of days out from the baseline date for which the percentage discount is valid.

Fixed Date: Enter the day of the month the discount ends if the baseline date is not used

Additional Month: If we want to add month to the baseline date month to determine the length of time the discount is valid

Explanations: The system defaults an explanation of the payment term in this field based on the percentage discount and length of time the discount is valid. An entry in the Own Explanation field overwrites the system derived explanation.