Credit Terms Data Setup
Credit terms are used to calculate invoice due dates and to apply settlement discounts on early payments. You can also use credit terms to define staged payments, which allow multiple payments to be made in stages, based on invoice percentages. Credit terms are linked to customers and suppliers, and default when invoices are created.
You can also create credit terms with fixed due dates using Credit Terms Create. Fixed due dates are not calculated based in the invoice date. For example, if a credit term has a fixed due date of February 1, and an invoice for which that due date applies is created on February 15, the invoice due date is still fixed as February 1. You can also create staged credit terms with fixed due dates.
You create a credit term with a fixed due date by specifying a due date in the Base Date/Fixed Due Date field and setting the No of Periods, Supplementary Days, Minimum Due Days, and Base Days fields to 0 (zero).
Payment Type
Select the type of payment, Normal or Staged. The payment type determines which tabs can be used to configure the credit terms code. Normal and discount payments are used with Normal payment types; staged payments are used with the Staged payment type.
The credit term description can be displayed in multiple languages.
Use the Discount tab to define the data that determines settlement discounts on early payments for Normal credit terms.
Discount Percentage
Specify a discount percentage that will apply for prompt payments for this credit terms code. The default percentage is zero, and you must specify the actual discount percentage in this field, and not the payment percentage.
Period Type
Choose the period type from the drop-down list. The options are days, weeks, fortnights, and months.
No of Periods
Enter the number of periods to take into account when calculating the due date.
Supplementary Days
Specify the number of days to add to the normal calculation date. This value applies only when you select the period type Month.
Staged payments consist of a series of normal credit terms, staggered over time periods. Enter a credit term code and percentage of payment for each stage of payment. The description of the credit terms code is displayed for reference. The payment percentages must total 100%.
