Use the following procedure to set up Accounts Receivable terms codes. The system uses this information to assign due dates to invoices, calculate discounts, and determine when discounts expire.
You must set up a terms code for each type of terms you offer. After that, you will indicate the "Customer Default - Terms Code" in Options Configuration to designate which terms code applies as a general rule to most of your Accounts Receivable accounts. For accounts that are exceptions to the rule, you can indicate the terms code that applies to that account.
Click GoTo, then click Maintain Terms (MTM). The Maintain Terms window displays.
In the Terms Code box, enter a single-digit code for the terms you are setting up.
In the Description boxes, enter a description to describe the terms, such as 2% ten days, net 30 days.
In the Variable Monthly Sales Discounts area, if you offer prompt payment discounts, do one of the following:
If you want all customers to receive the same discount, then on the first line, leave the From field blank, and enter 9999999 in the To field.
If you want to set up variable discounts based on sales volume, specify the sales volume (from and to) and the discount amount for up to five levels of discounts.
For example, you give a 5% terms discount to customers whose monthly sales volume is between $100 and $500. On the first level (line), enter 100 in the From field, 500 in the To field, and 5 in the Allows field.
For a definition of each field, click here.
In the Terms area, fill in the fields to define the terms you are setting up.
For example, if you are setting up terms for "2% 10 days, net 30 days," enter 10 in Discount Days, and 30 in Due Days.
For a definition of each field, click here.
Click Add.