Terms Code Maintenance (On the Fly)

Terms Code Maintenance (On the Fly) - Fields

Terms Code

Enter a number from 01-99 representing the terms code you want to add or maintain. Click the Lookup button to list all terms codes. The default "no terms" code of 00 is used for customers not entitled to discount terms. You cannot delete or change terms code 00, but you can change the description.

Description

Enter a description for the terms code (for example, Net 30 Days, 2% 10 Days Net 30, or 2% 10th Net EOM).

Copy From

Enter the terms code to copy information from, or click the Lookup button to list all terms codes.

Days Before Due

Enter the number of days from the original invoice date before payment is due (for example, Net 30 is due in 30 days and Net 10 is due in 10 days). If payment is due on a certain day of the month rather than a certain number of days, enter the actual day of the month on which payment is due. For example, if payment is due on the 15th of the month, enter 15 in this field.

Day of the Month (Days Before Due)

Select the Day of the Month check box if the terms require payment on a particular day of the month. This causes the number in the Days Before Due field to be used as a day of the month due. Clear the check box if payment is not required on a specific day. This causes the entry in the Days Before Due field to be added to the invoice date to determine the due date.

For example, if 10 is entered in the Days Before Due field, and the invoice is dated the 7th of the month, and if the Day of the Month check box is selected, the due date is the 10th. If the Day of the Month check box is cleared, the invoice must be paid on or before the 17th.

Minimum Days Allowed (Days Before Due)

If you selected the Day of the Month check box, enter the minimum number of days allowed before the invoice is due for payment.
For example, if the invoice is dated the 9th and you enter 10 in the Days Before Due field, select the Day of the Month check box, and enter 0 in the Minimum Days Allowed field, the invoice is due on the 10th. If the invoice is dated the 9th and you enter 10 in the Days Before Due field, select the Day of the Month check box, and enter 5 in the Minimum Days Allowed field, a grace period of five days is allowed, and the invoice is not due until the 10th of the following month.

Days Discount Allowed

Enter the number of days beyond the invoice date during which a discount is allowed (for example, 2% 10 Days must be paid within 10 days to qualify for the discount).

Day of the Month (Days Discount Allowed)

Select the Day of the Month check box if the discount expires on a particular day of the month. This causes the number in the Days Discount Allowed field to be used as a day of the month by which payment must be made to get the discount. Clear the check box if the discount does not expire on a specific day. This causes the entry in the Days Discount Allowed field to be added to the invoice date to determine the discount due.

For example, if 10 is entered in the Days Discount Allowed field, and the invoice is dated the 7th, and the Day of the Month check box is selected, the discount due date is the 10th. If 10 is entered in the Days Discount Allowed field, and the invoice is dated the 7th, and the Day of the Month check box is cleared, the invoice must be paid on or before the 17th to qualify for the discount.

Minumum Days Allowed (Days Discount Allowed)

If you selected the Day of the Month check box, enter the minimum number of days allowed before the discount expires.
For example, if the discount expires on the 9th and you enter 10 in the Days Discount Allowed field, select the Day of the Month check box, and enter 0 in the Minimum Days Allowed field, the discount is due on the 10th of the same month. If the discount expires on the 9th and you enter 10 in the Days Discount Allowed field, select the Day of the Month check box, and enter 5 in the Minimum Days Allowed field, a grace period of five days is allowed, and the discount is not due until the 10th of the following month.

Discount Method

Select a discount calculation method for this terms code.

Note The default discount calculation method (Discount on Gross Amount) calculates the discount on the gross invoice amount. This amount includes both freight and sales tax.

Discount Rate

Enter the discount rate. A 2% discount rate is entered as 2.000. A 2 1/2% discount rate is entered as 2.5000.