The Terms screen allows you specify the payment and or credit terms you make available to customers and receive from vendors. You can set discount percentages, discount dates, and due dates. From the terms screen you can maintain existing payment terms and enter new payment terms.
Terms
- When you specify payment terms, you can either set discount and due date as a number of days from the invoice date, or you can set Prox terms for discount and due date
- In general, for “Prox Due” terms all invoices created in a particular month prior to a cutoff date are due on a specific day of the following month instead of within a number of days of invoicing
- “Prox Discount” terms specify a discount if paid by the prox discount date and a due date when the net payment is due
- For example, when the payment term is “2% 10th Prox Net 20th Prox” (with a 26th cutoff), any invoice generated in September, prior to September 26th, will receive a 2% discount if paid by October 10th and is due net by Oct 20th
- An invoice dated after September 26th will receive a 2% discount if paid by November 10th and will be due net by Nov 20th
- Sometimes the due date can be specified as a certain number of days, but this has to exceed the maximum possible time to the next prox discount date for this to make sense
- So, with the above example, the Net 20th Prox for the due date could be replaced by Net 50 which means that an invoice dated on the cutoff date (the 26th) would be due net 50 days after the invoice date
- A “Y” will appear in the DISCOUNT PROX/#DAYS column of the Terms Master if prox terms are in effect
- If you are using both discount prox & due prox for a particular term, the invoice cutoff date will be the same for both
- Go to Settings > Value Lists > Value Lists (M-Z) > Terms to see a list of existing payment terms, edit payment terms, or create new payment terms
Terms Fields
| Buttons and Functions | Description |
| Active check box | To view an inactive account, see Active and Inactive Records. |
| Terms Code | The Terms Code is a consecutive numeric code that is assigned to each new Payment Terms record in Accolent ERP. When you create a new payment terms record, Accolent ERP will automatically assign the next available integer value. |
| Description | Enter a description of the payment terms record. An entry in this field is required. |
| Discount (%) | Enter a discount that will apply if the invoice is paid within the specified period from the invoice date. If no discount is on offer this field can be left blank and defaults to a zero value. |
| Discount if paid on or before – Days | Enter the number of days that the invoice must be paid within to qualify for the discount. The discount number of days can be specified as either a set number of days from the invoice date or a specific day of the month by selecting the corresponding radio button. Note that by selecting payment prior to a certain day of the month you will be specifying prox terms (see below) and the prox screens will automatically be pulled up. |
| Discount if paid on or before – Day of the month (Prox Discount) | Choose the Day of the Month radio button, to specify Prox payment terms that apply to payments made before the specified day of the month for the same or following months. For example to allow a 2% discount on payments made prior to the 10th day of the following month, enter 2.00 in the Discount (%) field and enter 10 in the Discount if paid on or before field, then select the radio button for Day of the month. You will also need to select the radio button for Following month. This series of entries will mean that an invoice generated before the cutoff date in a particular month will get a 2% discount if paid prior to the 10th day of the following month. Note that by specifying a discount date prior to a certain day of the month, the Prox Discount Terms tab will automatically list when payments are required before and after the cutoff day. The values in the Prox Discount Terms Tab can be changed as needed. |
| Net due if paid on or before – Days | Enter the number of days from the invoice date that the invoice becomes due and payable. This is usually greater than the number of days specified for the discount, unless you are specifying prox terms. |
| Net due if paid on or before – Day of the month (Prox Due) | If you want to specify Prox payment terms, you can enter the due day as a day of the month and indicate whether it is the Same Month or the Following Month. For example, to require payment prior to the 20th day of the following month, enter 20 in the Net Due field, then select the radio button for Day of the month. You will also need to select the radio button for Following month. This series of entries will mean that an invoice generated before the cutoff date in a particular month will be due on the 20th of the following month.
Note that by selecting payment prior to a certain day of the month you will be specifying prox terms and the prox due screen will automatically show when payments are required before and after the cutoff day. The values in the Prox Due Terms Tab can be changed to accommodate a short (or long) month or to reflect seasonal changes. |