Payment Terms Maintenance

Menu Path: Accounts Receivable $Images\bluerarw.gif$ Module Setup $Images\bluerarw.gif$ Payment Terms Maintenance

Purpose

Define a new payment terms code.
Update or delete an existing payment terms code.

Overview

Use Payment Terms Maintenance to define payment terms for both accounts payable vouchers and accounts receivable transactions (such as invoices, credit memos, and debit memos). The software provides many methods of defining payment terms to suit your business requirements.

You can set up payment terms to automatically calculate customer discounts. For more information, see Automatically Calculating Customer Discounts.

You can also import payment terms codes in Payment Terms Import.

For database information for this window, see Payment Terms Maintenance Database Information.

Adding Payment Terms Codes

To add a new payment terms code:

Click the New button in the ribbon to start the process of creating a new payment terms code.
Enter an alphanumeric terms code in the Terms Code field.
Enter a description defining the terms code in the Description field.
Select a terms type from the available types by selecting the appropriate radio button.
Depending on the terms type selected, enter all required information for that type.
Click the OK button in the ribbon to save the new payment terms code. The payment terms code is created.

Updating Payment Terms Codes

To update a payment terms code:

Select the payment terms code you want to update.
Click the Update button in the ribbon.
Update the payment terms code as necessary.
Click the OK button in the ribbon to save the changes. The payment terms code is updated.

Note When you update a payment terms code, orders that use the payment terms code are not automatically updated. The payment terms code for the existing orders becomes an inactive payment terms code, which you can update in Inactive Payment Terms Maintenance. If you update the inactive payment terms code, the orders are updated.

Deleting Payment Terms Codes

To delete a payment terms code:

Select the payment terms code you want to delete.
Click the Delete button in the ribbon.
Click the OK button in the ribbon. The payment terms code is deleted.

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the Payment Terms Maintenance window.
New	Click this button to create a new payment terms code. This button is only available if the Main tab is displayed.
Update	Click this button to update the selected payment terms code. This button is only available if the Main tab is displayed.
Delete	Click this button to delete the selected payment terms code. This button is only available if the Main tab is displayed.
Show Data	Click this button to display payment terms information. This button is only available if you click the Inquiry tab.
OK	Click this button to accept an action. This button is only available if you click the New, Update, or Delete button in the ribbon.
Cancel	Click this button to cancel an action. This button is only available if you click the New, Update, or Delete button in the ribbon.
First	Click this button to display the first payment terms code. This button is only available if the Main tab is displayed.
Prev	Click this button to display the previous payment terms code. This button is only available if the Main tab is displayed.
Next	Click this button to display the next payment terms code. This button is only available if the Main tab is displayed.
Last	Click this button to display the last payment terms code. This button is only available if the Main tab is displayed.

Fields and Buttons

Field or Button	Description
Terms Code	Enter a code for the payment terms, or click the Lookup button to select an existing payment terms code.

Main Tab Fields and Buttons

Field or Button	Description
Description	Enter a description for the payment terms code.
Credit Hold Term	Select this check box to automatically put on credit hold all sales orders that use the payment terms code. This check box is cleared by default, and is only available if the Finance check box is cleared. If the Credit Card radio button is selected, this check box is disabled. Note You cannot select this check box and the Ignore Credit Check check box.
Exclude Shipping Charge	Select this check box to exclude shipping charges when calculating the eligible cash discount during payment application. This check box is cleared by default, and is only available if the Finance check box is cleared. Note A charge is excluded only if the Freight Charge check box is selected for it in Order Entry Additional Charge Maintenance.
Ignore Credit Check	Select this check box to bypass the credit check during sales order entry for orders that use the payment terms code. This check box is cleared by default, and is only available if the Finance check box is cleared. If the Credit Card radio button is selected, this check box is selected automatically and disabled. Note You cannot select this check box and the Credit Hold Term check box.
Exclude Tax	Select this check box to exclude sales tax or VAT when calculating the eligible cash discount during payment application. This check box is cleared by default, and is only available if you select a terms type other than Prepaid, Calendar Terms, or Credit Card.
Guaranteed Funds	Select this check box if your system is integrated with the FedEx Ship Manager Server (FSMS), and the payment term is for a guaranteed funds payment, such as a cashier check, certified check, or money order. This check box is cleared by default, and is only available if you select the C.O.D., C.O.D. Personal Checks NOT Accepted, or C.O.D. Personal Checks Accepted terms type.
Finance	Select this check box if you are using a third-party financing institution (factoring your receivables) for the payment terms. For more information, see Finance Terms. This check box not available for C.O.D. and credit card payment terms.
Terms Type	Select one of the following payment terms types: Prepaid - The product was paid for before it was received. C.O.D. - Payment is due when the product is received. Note You must set up a C.O.D. type payment terms code to use One Step Voucher and Payment Entry. Due in # of Days - Payment is due in a specific number of days. Due on Day of Month - Payment is due on a specific day of the month. Prox Terms - Use this type to allow the due date and discount date to be a specific day of the month depending on the invoice date. When you create this type of payment term, you can divide each calendar month into two ranges, which each have separate payment terms. Split Terms - Use this type to allow an invoice to be broken up into payments (up to 12) based on a percentage of the entire invoice, or specific amounts. For this payment terms type, the due date on each invoice is the due date for the first payment. Calendar Terms - For certain industries, payments, by law must be made on a specific due date depending on when an invoice was created. This changes from month to month and year to year. Selecting this type allows you to define 13 buckets, each with a separate date range, pay date, discount date, and discount percentage. Credit Card (Interface) - Credit card terms must be defined if you want to process orders for customers that pay by credit card. Customer credit card information is set up in Credit Card Number Entry. Note You must set up a payment terms code for each credit card type that your customers use. C.O.D. Personal Checks NOT Accepted - Payment is received from a C.O.D. customer, but personal checks are not accepted as a form of payment. Certified checks and money orders are acceptable forms of payment. This payment terms type is only used with the UPS third-party interface. C.O.D. Personal Checks Accepted - Payment is received from a C.O.D. customer, and personal checks are accepted as a form of payment. This payment terms type is only used with the UPS third-party interface. All types of payment terms are used in the Accounts Receivable module. The Prepaid, C.O.D., Due in # of Days, Due on Day of Month, Prox Terms, and Calendar Terms types are also used in the Accounts Payable module.
A/P Module	This check box is selected if the selected payment terms type is used in the Accounts Payable module.
A/R Module	This check box is selected if the selected payment terms type is used in the Accounts Receivable module.
Discount Mask	Enter the cash discounts general ledger discount mask for the payment terms code, or click the Lookup button to display G/L Prompting, which allows you to select a general ledger account. You can enter all or part of the general ledger discount account number. The customer and sales locations are the other two areas where the cash discounts general ledger discount mask can be defined. For more information, see Account Resolution Order. This field is only available if you select a terms type other than Prepaid, Calendar Terms, or Credit Card.
Discount %	Enter the discount percentage if the payment is made before the discount due date. This field is only available if you select the C.O.D., Due in # of Days, Due on Day of Month, C.O.D. Personal Checks NOT Accepted, or C.O.D. Personal Checks Accepted radio button.
Discount Days	Enter the number of days from the invoice date during which a discount is allowed. This field is only available if you select the C.O.D., Due in # of Days, Due on Day of Month, C.O.D. Personal Checks NOT Accepted, or C.O.D. Personal Checks Accepted radio button. Example Invoice 123 has an invoice date of 6/30/2020 and the discount days for the payment terms code is 10. A cash discount is allowed if the invoice is paid on or before 7/10/2020.
Net Days	Enter the number of days from the invoice date to determine the due date. This field is only available if you select the C.O.D., Due in # of Days, Due on Day of Month, C.O.D. Personal Checks NOT Accepted, or C.O.D. Personal Checks Accepted radio button. Example Invoice 123 has an invoice date of 6/30/2020 and the net days of the payment terms code is 30. The invoice due date is 7/30/2020.
Day-of-month	Enter the day of the month by which the payment should be made. This field is only available if you select the Due on Day of Month radio button. Example If the day of the month is 10 for a payment terms code, and an invoice is created with an invoice date of 6/25/2020 that uses the payment terms code, the due date is 7/10/2020.
Institution Code	Enter the customer code of the institution that will be paying the invoices that use the payment terms code, or click the Lookup button to select the customer code. This field is only available if you select the Finance check box. Note The institution must be set up in Customer Maintenance and be a valid billing customer.
Institution Name	Enter the customer name of the institution that will be paying the invoices that use the payment terms code, or click the Lookup button to select the customer name. This field is only available if you select the Finance check box. Note The institution must be set up in Customer Maintenance and be a valid billing customer.
Factor Client Code	Enter the client code of the factoring institution. This is typically a four- or six-digit code. This field is only available if you select the Finance check box.
Factor Terms Code	Enter the factor terms code of the factoring institution. This field is only available if you select the Finance check box.
Credit Hold Required Date Threshold	Enter the maximum number of days an order's required date can be changed without the order being credit checked. Example You enter 21 in this field. An order has a required date of 11/01/2020. If the order is updated to only change the required date to 11/15/2020, the order is not credit checked (because the date has only changed 14 days, which is less than 21). If the order is updated to change the required date to 12/31/2020, the order is credit checked (because the required date is changed by more than 21 days). This field is only available if you select the Finance check box.
Approval Export Program	If the factoring institution requires you to transmit order information for approval, enter the Apprise program (.p) used to export the data in Factor Order Approval Export (in the format required by the institution). This field is only available if you select the Finance check box. For CIT, enter ordappexp-cit.p in this field. For TCF Inventory Finance, enter ordappexp-TCF.p in this field. For Wells Fargo, enter ordappexp-wf.p in this field. For information on the export file format, see Factor Order Approval Export Format.
Approval Import Program	If you receive order approval information from the factoring institution, enter the Apprise program (.p) used to import the data in Factor Order Approval Import (in the format required by the institution). This field is only available if you select the Finance check box. For CIT, enter ordappimp-cit.p in this field. For TCF Inventory Finance, enter ordappimp-TCF.p in this field. For Wells Fargo, enter ordappimp-wf.p in this field. For information on the import file format, see Factor Order Approval Import Format.
Approval Expiration Days	Enter the number of days after approval is received from the factoring institution to put orders back on finance terms hold (indicating the approval has expired), and mark orders as not transmitted to the factoring institution. This defaults to zero. This field is only available if you select the Finance check box. NOTE Order approval expiration is only checked when credit tasks are refreshed in Credit Task Refresh.
Credit Card Authorization Valid for	Enter the number of days before the credit card is reauthorized. Credit cards are reauthorized when pick demands are printed if more than this many days has passed since the initial authorization. If you enter zero, the credit card is not reauthorized. This field is only available if you select the Credit Card radio button.
Default credit card terms	Select this check box if the credit card payment terms are the default credit card payment terms. You can only select this check box for one payment terms code. The default credit card payment terms are used if the credit card type transmitted from Worldpay is not set up in Apprise. This check box is only enabled if you select the Credit Card radio button.
Percent	Enter the percent of the total invoice to be charged for a C.O.D. shipment. This field is slated for functionality in a future release, and is only available if you select the C.O.D. Personal Checks NOT Accepted or C.O.D. Personal Checks Accepted radio button.
Provider Charge	Enter any charge that the provider (e.g. UPS) charges for C.O.D. deliveries, which will be billed to the customer. This field is slated for functionality in a future release, and is only available if you select the C.O.D. Personal Checks NOT Accepted or C.O.D. Personal Checks Accepted radio button.

Prox Terms Tab Fields and Buttons

This tab is only available if you select the Prox Terms radio button.

Field or Button	Description
Start Day (Range 1)	This field displays 1 to indicate that the first range begins on the first day of the month.
End Day (Range 1)	Enter the last day of the month for the first prox terms range. This field controls the date range for both the first and second range. Example If you enter 25, then the first range is from the 1st to the 25th of each month.
Determine Due Date Using Net Days (Range 1)	Select this check box to specify the due date for the first range based on a specific number of days after the invoice date. If you leave this check box cleared, you instead specify the due date for the first range based on a specific day of the month in a month after the invoice date.
Discount # of Months Forward (Range 1)	Enter the number of months to add to the month of the invoice date for determining the discount date (if the invoice date is in the first range). 12 is the maximum value you can enter. Example If 2 is entered in this field, an invoice date is 6/20/2020, and day 20 falls in the first range, the discount date will be in August.
Discount % (Range 1)	Enter the cash discount percentage applicable to the first range.
Due # of Months Forward (Range 1)	Enter the number of months to add to the month of the invoice date for determining the due date (if the invoice date is in the first range). This field is only available if you clear the Determine Due Date Using Net Days check box for range 1. 12 is the maximum value you can enter. Example If 2 is entered in this field, an invoice date is 6/20/2020, and day 20 falls in the first range, then the due date will be in August.
Due Day of Month (Range 1)	Enter the day of the month that payment is due if the invoice date is in range 1. The month is calculated based on the number entered in the Due # of Months Forward field for range 1. This field is only available if you clear the Determine Due Date Using Net Days check box for range 1. Example If 15 is entered in this field, an invoice date is 6/20/2020, day 20 falls in the first range, and 1 is entered in the Due # of Months Forward field, then the due date is 7/15/2020.
Due Net Days (Range 1)	Enter the number of days after the invoice date that the invoice is due for invoice dates in range 1. This field is only available if you select the Determine Due Date Using Net Days check box for range 1. Note The software does not validate that the discount date is before the due date.
Discount Day of Month (Range 1)	Enter the last day of the month the discount can be taken for range 1. The month is calculated based on the number entered in Discount # of Months Forward field for range 1. Example If 15 is entered in this field, the invoice date is 6/20/2020, day 20 falls in the first range, and 1 is entered in the Discount # of Months Forward field for range 1, the discount date is 7/15/2020.
Start Day (Range 2)	This field displays the day that starts the second range, and is equal to the day after the day entered in the End Day field for the first range. Example If the range 1 end day is 25, then the range 2 start day is 26.
End Day (Range 2)	This field displays 31 to indicate that the second range ends on the last possible day of the month.
Determine Due Date Using Net Days (Range 2)	Select this check box to specify the due date for the second range based on a specific number of days after the invoice date. If you leave this check box cleared, you instead specify the due date for the second range based on a specific day of the month in a month after the invoice date.
Discount # of Months Forward (Range 2)	Enter the number of months to add to the month of the invoice date for determining the discount date (if the invoice date is in the second range). 12 is the maximum value you can enter. Example If 2 is entered in this field, an invoice date is 6/21/2020, and day 21 falls in the second range, the discount date will be in August.
Discount % (Range 2)	Enter the cash discount percentage applicable to the second range.
Due # of Months Forward (Range 2)	Enter the number of months to add to the month of the invoice date for determining the due date (if the invoice date is in the second range). This field is only available if you clear the Determine Due Date Using Net Days check box for range 2. 12 is the maximum value you can enter. Example If 2 is entered in this field, an invoice date is 6/21/2020, and day 21 falls in the second range, then the due date will be in August.
Due Day of Month (Range 2)	Enter the day of the month that payment is due if the invoice date is in range 2. The month is calculated based on the number entered in the Due # of Months Forward field for range 2. This field is only available if you clear the Determine Due Date Using Net Days check box for range 2. Example If 15 is entered in this field, an invoice date is 6/21/2020, day 21 falls in the second range, and 1 is entered in the Due # of Months Forward field, then the due date is 7/15/2020.
Due Net Days (Range 2)	Enter the number of days after the invoice date that the invoice is due for invoice dates in range 2. This field is only available if you select the Determine Due Date Using Net Days check box for range 2. Note The software does not validate that the discount date is before the due date.
Discount Day of Month (Range 2)	Enter the last day of the month the discount can be taken for range 2. The month is calculated based on the number entered in Discount # of Months Forward field for range 2. Example If 15 is entered in this field, the invoice date is 6/21/2020, day 21 falls in the second range, and 1 is entered in the Discount # of Months Forward field for range 2, the discount date is 7/15/2020.

Example

Case 1: You are entering an accounts receivable invoice in January, using a prox terms payment terms code set up as follows:

	Start Day	End Day	Discount # of Months Forward	Discount Day of Month	Discount %	Due Net Days	Due # of Months Forward	Due Day of Month
Range 1	01	25	01	10	10.00	N/A	01	15
Range 2	26	31	02	15	7.00	60	N/A	N/A

If the invoice date is between 1/1 and 1/25, the discount date is 02/10, the discount is 10%, and the due date is 2/15.

If the invoice date is between 1/26 and 1/31, the discount date is 3/15, the discount is 5%, and the due date is 60 days after the invoice date.

If the payment term is selected in Voucher Entry for a voucher, the discount date, discount amount, and due date are also calculated the same way. The following table displays the result for two vouchers:

Voucher Date	Discount Date	Discount Amount	Due Date
01/15/2020	02/10/2020	10.00%	02/15/2020
01/30/2020	3/15/2020	7.00%	03/30/2020

Split Terms Tab Fields and Buttons

This tab is only available if you select the Split Terms radio button.

Field or Button	Description
Split Option	Select whether payment is split by a percentage or an amount.
Payment %	Enter the percentage of the entire invoice to be paid for each selected payment number. You can enter up to 12 percentages. This field is only available if you select the Split % radio button.
Payment Amount	Enter the amount to be paid for each selected payment number. You can enter up to 12 amounts. This field is only available if you select the Split Amount radio button.
Remainder	The radio button is selected to indicate that any remaining amount is put on this specific payment number. These radio buttons are only available if you select the Split Amount radio button. Note Each time another payment amount is entered, the next higher radio button is selected (i.e., if you enter payment number 4, the 5 radio button is selected).
Net Due Days	Enter the number of days to add to the invoice date to determine the due date.
Discount %	Enter the discount percentage for the payment number (if any).
Discount Due Days	Enter the number of days to add to the invoice date to determine the discount date.
Total %	This field displays the total of the percentages entered in the Payment % fields. This field is only available if you select the Split % radio button.
Total Amt	This field displays the total of the amounts entered in the Payment Amount fields. This field is only available if you select the Split Amount radio button.

Calendar Terms Tab Fields and Buttons

This tab is only available if you select the Calendar Terms radio button.

Field or Button	Description
From Date	Enter the first date in up to 13 ranges of dates for which you want to define payment terms, or click the drop-down arrow to select a date.
To Date	Enter the last date in up to 13 ranges of dates for which you want to define payment terms, or click the drop-down arrow to select a date.
Pay Date	Enter the date payment is due for each range of dates, or click the drop-down arrow to select a date.
Disc Date	Enter the date before which a discount is earned for each range of dates, or click the drop-down arrow to select a date.
Disc Percent	Enter the discount percentage if payment is made before the discount date for each range of dates.

Inquiry Tab Fields and Buttons

Note This tab is disabled if you are editing a payment terms code.

Field or Button	Description
Payment Terms Codes	This grid displays payment terms codes after you click the Show Data button in the ribbon. Double-click a payment terms code to select it and display information for it on the Main tab.