You set up payment terms that are assigned to customers to specify various details about paying their invoices, such as:
Note: You must define at least one set of payment terms before you can add customer records.
You define sets of payment terms on the A/R Terms Screen.
Each set of payment terms is identified with a terms code. You assign a terms code to each customer to set the default terms that appear when you enter invoices for the customer. You also assign a terms code to each customer group.
Note: By default, the terms code for a customer group is assigned to customers in the group (for example, when you add a new customer to a customer group, or change a customer's group). However, you can change the terms code for a customer.
You can use the Multiple Payment Schedule option to allow installment payments. You can set up as many installment periods as you need, and you can define installment periods that vary in length.
You can offer a discount for early payment, specifying the percentage of the discount and the period during which it is available. Also, if you charge taxes on sales, you can specify whether to calculate the discount on the document total before or after tax.
Standard due dates are similar to selecting Day of Next Month except they do not restrict you to a single due date. Select Due Date Table for the Due Date Type and use the Due Date Table to specify a due date for one to four ranges of days on which invoices are issued. The due dates can be one or more months later.
For example, invoices entered between the first and fifteenth of each month may be due on the thirtieth of the month, and invoices entered between the fifteenth and the end of the month may be due on the fifteenth of the next month.
You can also define discount periods in the same way by selecting Discount Date Table for the Discount Date Type and enter a table of standard discount periods.
When entering a transaction, the terms code for the customer is used by default. However, you can change this to any valid terms code. You can also change most of the details of the payment terms for that transaction, including:
Note: You cannot increase the number of installment payments in a payment schedule.