A/P Terms Screen

Specify whether to include tax amounts in the invoice totals on which discount amounts are calculated:

• Included. Select this option if you receive a discount on taxes.
• Excluded. Select this option if you do not receive a discount on taxes or are not charged taxes by your vendors.

Note: You can change the discount amount on individual invoices that use terms codes with discounts.

Select the method your vendor uses to calculate the last day on which you may take a discount for prompt payment. You select from the options for Due Date Type, and type discount percentages.

If you do not receive discounts from your vendors, ignore the discount fields and columns.

You can select:

• Days from invoice date. Select this option if discount dates are calculated as a particular number of days from the document date.
• End of next month. Select this option if the discount date is the last day of the next month, regardless of the document date or the number of days in the month.
• Day of next month. Enter the number of the day of the next month that is the discount date.
• Days from day of next month. Enter the number of days from a specific day of the next month.

  Example: If the due date is 10 days after the first of the month, enter 10 in the Number of Days field, and 1 in the Day of Month field.

• Disc date table. Select this option if your vendors use standard discount dates for invoices entered within specified ranges of days.

  Standard due dates are similar to "day of the month due," except they do not restrict discount periods to a single date. For example, you can use standard discount dates to assign invoices to the 15th or 30th of each month.

  You define the standard discount dates used by your vendors with a table that lets you specify a discount date for each of up to four ranges of days on which invoices were issued. You can also assign discount dates that are one or more months later.

Specify the method you use to calculate the due dates for transactions as:

• Days from invoice date. Select this option if invoices are due by a particular number of days from the document date. Enter the number of days in the Number Of Days column that appears.
• End of next month. Select this option if invoices are due on the last day of the next month, regardless of the document date or the number of days in the month.
• Day of next month. Enter the number of the day of the next month that is the due date, and then enter the number (representing the due date) in the Day of Month column.

  Example: If invoices are due on the fifteenth of each month, enter 15.

• Days from day of next month. Enter the number of days from a specific day of the next month.

  Example: If the due date is 30 days after the first of the month, enter 30 in the Number of Days field, and 1 in the Day of Month field.

• Due date table. Select this option if your vendor uses standard due dates for invoices with specific ranges of days. Then complete the table that appears.

  Standard due dates are similar to "day of the month due," except they do not specify a single due date. For example, invoices may be due on the 15th or 30th of each month. Standard dates are geared to businesses that enter invoices throughout the month, but issue invoices only on specific days of the month.

  You define standard due dates used by your vendors with a table that specifies due dates for each of up to four ranges of invoice dates. You can also specify due dates that are one or more months later than invoice dates.

Select this option if you do not want to assign the terms code to any vendors.

Example: You might use this option if you decide to delete a terms code, and want to ensure no further vendor accounts are assigned to it.

You can change this option at any time.

Note: If you make a terms code inactive, you can no longer assign it to vendor records. You also cannot save changes to vendor records that use the inactive code, unless you first assign an active terms code to the records.

This field displays the date of the last change made to the terms code.

Select this option to define a terms code that allows installment payments. When you select this option, the terms table expands to add lines for additional payments (otherwise, only a single line is displayed).

When adding a new set of payment terms, enter a code to identify the terms, using up to six characters.

In the field to the right, enter a description (name) for the terms code.