36.3 Set Up Payment Terms


A description of each field follows.

Payment Terms Code

Enter a unique code to identify the payment terms. This code is entered on the vendor master screen as the default payment terms for the vendor. The terms code entered on the voucher screen determines the pay date, discount date, and discount amount. Examples of payment terms codes would be: 2/10,n/30 or n/30.

Payment Period in Days

Enter here the maximum time in days allowed for payment. For example, if the terms allowed 30 days for payment as with the terms 2/10,n/30, 30 would be entered. This number is used to calculate the default pay date of the voucher.

Discount Percent

If the terms allow a discount for early payment, enter the percentage of the discount here. Again, using the example terms 2/10,n/30, 2 would be entered. The percentage is used to calculate the default amount of the discount.

Discount Period in Days

Enter here the maximum number of days in which payment can be made and still qualify for the discount. Using the terms 2/10,n/30 as an example, 10 would be entered. This value is used to calculate the default discount date.

Values must be entered into the Payment Terms Code and the Payment Period in Days fields. The discount fields are optional and used only if the terms include a discount for early payment.