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Payment Terms
Getting Started > Setting Up a New Company > Company Setup > Settlement Terms > Payment Terms

Glossary Item Box

 

Introduction About:

Payment Terms are the agreed upon terms of payment between a buyer and seller.  In Interprise Suite, the payment terms are used both in selling and purchasing processes and may be assigned to each of your customers and suppliers.

Note:
When in the Payment Terms screen of the New Company Wizard, you will find default payment terms.  You can modify or add to the payment terms based on the needs of your company.


 

Terminology Steps:

Create New Payment Term

  1. From the Payment Term screen of the New Company Wizard, click on the New button. Or, from the System Manager module, select Payment Term under the Maintain menu. The Payment Term setup form will display.
  2. You may create payment terms using the following due types. See the How To topic list for more information.
    • Net Days from Invoice Date - payment must be made in the specified number of days following the invoice date.
    • End of Month - payment must be made after a month following the invoice date. Specify the net days for this due type.
    • Calendar Monthly - the system will calculate the number of days in a month following the invoice date.
    • Seasonal - the term will be applied limited to the season it is applicable. Specify the net days for this due type.
  3. Click on the Active checkbox to include the Payment Term in pulldown lists.
  4. Save the details before closing the Payment Term setup form.

 

How To How To:

 

ShowCreate a Net Term (Without Discount)

  1. Specify the Payment Term Code and Description e.g. NET30 – Terms 30 Days from Document Date.
  2. Select “Net Days from Invoice Date” as Due Type.
  3. In the Terms Days field, enter the net days to pay following the invoice date.
  4. Select the Payment Type that would determine the default payment method, bank account and payment gateway to use.
  5. You may add an Interest Charge percent for overdue payments.

 

 

ShowCreate a Net Term (With Discount)

  1. Specify the Payment Term Code and Description e.g. NET 30 2% 7 – Terms 30 Days from Document Date – 2% Discount if Paid within 7 Days.
  2. Select “Net Days from Invoice Date” as Due Type.
  3. In the Term Days field, enter the net days to pay following the invoice date.
  4. To add settlement discount, select the discount type in the Discount Type field.
    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.
    2. If Amount, enter the discountable days following the invoice date and the discount amount.
  5. Select the Payment Type that would determine the default payment method, bank account and payment gateway to use.
  6. You may add an Interest Charge percent for overdue payments.

 

ShowCreate an End of Month Term

  1. Specify the Payment Term Code and Description e.g. EOM – End of Month
  2. Select “End of Month” as Due Type.
  3. In the Term Days field, you may enter the net days to pay following the invoice date.
  4. To add a settlement discount, select the discount type in the Discount Type field.
    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.
    2. If Amount, enter the discountable days following the invoice date and enter the discount amount.
  5. Select a Payment Type that would determine the default payment method, bank account and payment gateway to use.
  6. You may add an Interest Charge percent for overdue payments

 

ShowCreate a Calendar Monthly Term

  1. Specify the Payment Term Code and Description e.g. Calendar Monthly
  2. Select “Calendar Monthly” as Due Type. The system will calculate the end of month following the invoice date according to the system calendar.
  3. To add a settlement discount, select the discount type in the Discount Type field.
    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.
    2. If Amount, enter the discountable days following the invoice date and enter the discount percent.
  4. Select a Payment Type that will determine the default payment method, bank account and payment gateway to use.
  5. You may add an Interest Charge percent for overdue payments.

 

ShowCreate a Seasonal Term

  1. Specify the Payment Term Code and Description e.g. Seasonal
  2. Select “Seasonal” as the Due Type.
  3. In the Start Date field, select the date that the seasonal term will take effect.
  4. In the Term Days field, you may enter the net days to pay following the invoice date.
  5. To add a settlement discount, select the discount type in the Discount Type field.
    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.
    2. If Amount, enter the discountable days following the invoice date and enter the discount percent.
  6. Select the Payment Type that will determine the default payment method, bank account and payment gateway to use.
  7. You may add Interest Charge percent for overdue payments.

 

ShowMaintain Payment Terms

  1. Go to the System Manager module.
  2. Select Payment Term under the Maintain menu to display the Payment Term setup form.
  3. Edit the details as necessary and save before closing the form.

 

ShowDelete Payment Terms

Note that only payment terms that has not been assigned to class templates or used in any transaction may be deleted.

  1. From the Payment Term setup form, select the Payment Term to delete.
  2. Click on the Delete option in the toolbar menu.
  3. Choose Yes in the prompt to delete.

 

 

Next Steps Next Steps:

 

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