Exercise: Credit Terms

Purchase Order Setup > Exercise: Credit Terms

Set up credit terms for use with suppliers (on purchase orders) and customers (on invoices).

1 Use Credit Terms View (36.1.10.3) to review the credit terms that already exist in the database.

2 Use Credit Terms Create (36.1.10.1) to add a new credit term.


Field	Data
Normal Tab
Terms code	2/15N45
Description	2% DISC IN 15/DUE 45
Period Type	Days
No of Periods	45
Discount Tab
Discount Percentage	2
Period Type	Days
No of Periods:	15

3 Use Credit Terms Create (36.1.10.1) to add another five credit terms:

a 2/10P15: Terms are 2% Discount if paid within 10 days.

Entire invoice amount due at the end of the month with a minimum of 15 days.

b N20: Entire invoice amount due 20 days from the date of the invoice.

c EOM20: The entire invoice is due on the 20th day of the next month.

d 0: Entire invoice amount due upon receipt of the invoice.

e 50/50 (optional): Half of the invoice amount is due upon receipt of the invoice (credit term 0) and the balance is due in 20 days (credit term N20).

• Set Payment Type to Staged.

• In the Staged tab right click and select Insert a New Row.

• Enter the credit term 0 in the Credit Terms field, and 50 in the Percentage field.

• Right click and insert a new row for the credit term N20 and enter 50 in the Percentage field.