Adding or Modifying a Terms Code

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About Terms Codes

A/P Terms Screen

You use the A/P Terms screen to set up codes for your vendors' payment terms.

You assign a terms code to each vendor record to set the default terms that appear when you enter transactions for the vendor. However, you can specify different terms during transaction entry.

Changes you make to terms codes have no effect on existing, unposted documents that use the codes. You must edit invoice batches to register changes such as new discount percentages and dates.

Note: You must add at least one terms code before you can enter Accounts Payable transactions.

  • Before adding a terms code, determine:

    • The identifying code.

      Note: You can change everything in a terms code record except the identifying code.

    • The method for calculating the due dates for invoices that will use the code.
    • Discount periods and percents (if used).
  • You may want to post batches that use terms codes you plan to delete, or edit the invoices to enter different terms codes. However, you can post batches that contain deleted terms codes.

To add a terms record:

  1. Open Accounts Payable > A/P Setup > Terms.

  2. In the Terms Code field, enter the identifying code.
  3. In the Description field, type a description for the terms code.
  4. For the Calculate Base for Discount with Tax option, specify whether to include tax amounts in the invoice totals on which discount amounts are calculated. More...

    Select:

    • Included if you can take a discount on taxes.
    • Excluded if your vendors do not allow a discount on taxes or do not charge taxes.
  5. If you want to allow payment by installments with this code, select the Multiple Payment Schedule option. Then select the due date type and enter information for each payment.
  6. In the Due Date Type field, select the method by which you calculate invoice due dates. More...

    Select:

    • Days from Invoice Date if invoices are due in a specific number of days after the invoice date. Then type the number of days in the Number Of Days column that appears.
    • End of Next Month if invoices are due on the last day of the next month.
    • Day of Next Month if invoices are due on a specific day in the next month. Then type the number (representing the due date) in the Day of Month column.
    • Days from Day of Next Month if invoices are due a standard number of days after a specific day in the next month. Then type the number of days and the number that represents the day of the month.
    • Due Date Table if you use standard due dates for invoices entered within specified ranges of days. Then complete the table that appears.
  7. In the Discount Type field, select the method you use to calculate the last day on which your vendors let you take a discount for prompt payment. If your vendors do not offer discounts, ignore the discount fields and columns. More...

    You select from options as described for Due Date Type, and then type discount percentages.

  8. Click Save.

To edit a terms code:

  1. Open Accounts Payable > A/P Setup > Terms.

  2. In the Terms Code field, specify the terms code you want to change.
  3. Make your changes.
  4. Click Save.

To delete a terms code:

  1. Open Accounts Payable > A/P Setup > Terms.

  2. In the Terms Code field, specify the terms code you want to delete.

  3. Click Delete.

    If a message appears asking you to confirm the deletion, click Yes.

  • Assign new terms codes to vendor records that require them.
  • If necessary, edit any unposted invoices in the A/P Invoice Entry screen. substituting other terms codes for those you deleted, or changing terms information for records you modified.