General Information about Payment Terms
Creating a New Payment Term
Removing a Payment Term from Settings
General Information about Payment Terms
Only payment terms that include cash discounts should be defined in the settings. A payment term defined in the settings can be selected on the invoice. Any cash discounts are calculated based on the payment term in relation to the due date and the invoice date. It is advisable to also add a cash discount payment term as a default in the supplier information (Registers – Suppliers – Comments), so that the information is automatically picked up on the invoice.
NOTE for Purchase Invoices - workflow!
The accounts payable interface used in Purchase Invoices affects how cash discounts and payment terms are transferred to the core system. The code for the payment term in Purchase Invoices must be the same as the code used in the core system.
Creating a New Payment Term
- Open the Settings – Payment Terms view
- Click the New button
- Fill in the details in the opened window
- Finally, save the information by clicking the Save button.
Code
Enter a numeric code for the payment term, which will be used to list the payment term in the settings. Payment term codes must correspond to the codes used in the core system to which the invoices are transferred.
Net Due Date
Define the deadline for the invoice, by which the invoice must be paid at the latest. In the example, 30.
Discount 1, days
Define the first date from the net due date by which the invoice must be paid to qualify for the first cash discount percentage (Discount 1, days/in the example 7 days)
Discount 1, percentage %
Define the cash discount to be given on the invoice if the invoice is paid by the first date specified in the payment term (Discount 1, %/ in the example 2%).
Discount 2, days
Define the next date from the net due date by which the invoice must be paid to qualify for the second cash discount percentage (Discount 2, days/ in the example 14 days).
Discount 2, percentage %
Define the cash discount to be given on the invoice if the invoice is paid by the second date specified in the payment term. (Discount 2, % /in the example 1%).
NOTE! No changes are allowed to the payment term currently in use. When a payment term changes, a new payment term must always be created. This helps avoid errors regarding invoices that are in circulation. Please note that the new Own Due Date function allows for changes to the due date on an invoice-by-invoice basis without affecting the payment term.
Removing a Payment Term from Settings
- Go to the Settings – Payment Terms view
- Select the payment term to be removed by clicking the checkbox in front of the respective payment term row
- Click the Remove button
The selected payment term will be removed from the settings. The details of the removed payment term will be visible in the Transferred – Removed view.