A terms code is used by the system to calculate discounts due for prompt payment. For example, you may have a vendor that gives you a 5% discount when you pay your bill within 15 days of the invoice date.
Set up a code for each different payment term you plan to use in the Accounts Payable application. Normally, you use only a few different payment terms.
Click Go To, then click Terms Code Maintenance.
In the Terms Code box, enter a code to identify the terms (up to three digits).
In the Terms Code Type box, click on the arrow and select Normal, Proximo, or End-of-Month.
For field help definitions, click here.
In the Description box, type a description of the terms (for example, 5% Net 30th).
In the Due days box, enter the following:
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If Terms Code Type is |
Then |
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N |
Enter the number of days after the invoice date that payment is due. |
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P |
Enter the date in the following month on which payment is due (for example, enter 10 if payment is due on the 10th of the month) |
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E |
Leave this field blank to accept the default of EOM. Payment will be due on the last day of the following month. |
In the Discount Days box, enter the following:
|
If Terms Code Type is |
Then |
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N |
Enter the number of days from the purchase date on which discounted payment is due. |
|
P |
Enter the date in the following month on which discounted payment is due. For example, enter 10 if a discount is allowed through the 10th of the month. |
|
E |
Enter the date in the following month on which discounted payment is due. |
In the Discount Percent box, enter the percentage the system should use when calculating a discount.
Click Add.
Repeat steps 3-9 for any additional terms you want to add.
(Optional) Print a list of the all the vendor's terms you have on file by running the Print Terms Code List report.