Individual Settings - Payment Terms

The Payment Terms setting is included in the following Standard products:
  • Standard Accounts (Sales and Purchase Ledger modules)

  • Standard Contracts

  • Standard Invoicing

You can assign various terms for payment to your Invoices and Purchase Invoices. Payment Terms control the calculation of Invoice Due Dates.

If you are using Standard Accounts, you will find the Payment Terms setting in both the Purchase and Sales Ledger modules. Use the [Module] button in the Master Control panel to enter either of these modules to work with this setting. Then, as in every Standard product, open the setting by first clicking the [Settings] button in the Master Control panel and then double-clicking 'Payment Terms' in the 'Settings' list. The 'Payment Terms: Browse' window is opened, showing the Payment Terms that you have previously entered.

Double-click a Payment Term in the list to edit it, or add a new term by clicking the [New] button in the Button Bar. When the record is complete, save it by clicking the [Save] button in the Button Bar or by clicking the close box and choosing to save changes. To close it without saving changes, click the close box.

Enter the unique code by which the Payment Term record is to be identified from elsewhere in your Standard application. The Code can consist of one or two characters, and you can use both numbers and letters.

Enter the name for the Payment Term, to be shown in the 'Payment Terms: Browse' window and the 'Paste Special' list.

Net Days
The credit period in days. When you use the Payment Term in an Invoice or a Purchase Invoice, the value entered here will be added to the Invoice Date to calculate the Due Date of the Invoice.

The Payment Term can belong to one of three Types, as follows:
A normal payment. The Due Date in an Invoice will be calculated by adding value in the Net Days field to the Invoice Date.

Credit Note
This type is used for Credit Notes, to make sure that your Sales Ledger and Purchase Ledger are updated correctly. You should have at least one Payment Term record of this type if you wish to raise Credit Notes. Credit Notes on the sales side are described here, and those on the purchase side here.

Use this Type for cash payments. The number of days is not relevant. Invoices with this Payment Term are known as "Cash Notes".

When you approve a Cash Note, it will immediately be treated as paid. Therefore, you don't need to enter a Receipt or a Payment.

If you are using Standard Accounts, approving a Cash Note on the sales side will cause a Nominal Ledger Transaction to be created which debits the Cash Account specified in the field above and credits the appropriate Sales Account for each Item on the Invoice. Cash Notes on the purchase side behave in a similar fashion, crediting the Cash Account. As Cash Notes are immediately treated as paid, no postings to Debtor or Creditor Accounts will be made.
The following additional field is included in Standard Accounts:
Cash Account
Paste Special    Account register, Nominal Ledger
If the Type is "Cash", enter the Account to be debited by cash sales and credited by cash purchases. You must specify a Cash Account if the Type is "Cash".

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