Payment Terms are a key part of your Credit Control policies. They can be applied to Sales and Purchasing Documents.
They enable you to define the payment due dates for Transaction Documents with respect to the date on which these documents were issued.
Payment Terms are defined in Salesorder app using Payment Term Documents.
Using a Payment Term Document you can define
- relative due date and
- associated early payment discount.
New Payment Term
A new Payment Term can be defined in the following ways:
Users can manually configure payment terms or import them.
Define manually |
To manually create Payment Terms in Salesorder, go to: ACCOUNTING > Payment Terms > + |
Import into Salesorder |
To import Payment Terms into SalesOrder app, go to: SETUP > Import Data > Payment Terms > Select Download Template. Enter the details in the downloaded template. Ensure that there are no duplicates. Save the template. Using the Upload Data option on the same screen, import the Payment Terms. For more details on importing data, check Using Import Data After running import, to verify all imported records, go to: ACCOUNTING > Payment Terms |
Payment Terms: Configuration
To configure Payment Terms document, go to:
ACCOUNTING > Payment Terms
Configuration options are when defining Payment Terms are as follows:
Default Payment Terms |
Term name: A name. Description: A brief description. Term Types: Define how the due date should be calculated. Following options are available:
Net due in days: Define number of days by which you need to make the payment. Due on day next month: The day in the month by which you need to make the payment. |
Early payment discount |
Set up terms to reflect and automate the calculation and application of early payment discounts.
Discount within days: Define what qualifies as an early payment. Discount %: Define the discount amount for early payments. For example: Payment within 7 days qualifies for a 5% discount. |
Configure general ledger entries |
Users can set where early payment discount entries are recorded in the general ledger. To configure Customer and Supplier Payment discount accounts, go to: SETUP > Configuration > Accounting section > Accounts > Default Accounts section > Edit Set Customer Payment Discounts field. Set Supplier Payment Discounts field. |
Configure Payment Terms on Trading Partner |
Trading partners are Customers, Suppliers or Workers. To set payment terms on a trading partner, go to: Customer | Supplier | Worker > Profile > Trading Information Transaction Documents i.e. Sales Orders and Sales Invoices inherit and apply these settings, so that users can track and manage debtor and creditor balances. |