Normal Tab
Use the Normal tab to define settings that determine invoice due dates for Normal credit terms.
Field Descriptions
Period Type
Choose the period type from the drop-down list that is used as the base for due date calculation. Calculations can be based on days, weeks, fortnights, months.
In each case, the system calculates the due date starting from the invoice date, and adds the number of periods (for example, weeks or months) indicated in the next field.
Days: The system calculates the due/discount date by starting from the invoice date and adding the number of days indicated in the No of Periods field.
Months: The system calculates the due/discount date by starting from the invoice date, going to the end of the invoice month, adding the number of calendar months indicated in the No of Periods field, then adding the number of days specified in the Supplementary Days field.
Fortnight: If the invoice date is prior to 15th of the month, the system uses 15th of the month as the starting point for discount/due date calculations. If the invoice date is after 15th, the system uses the end of the invoice month as the starting point in its calculations. Finally, if the invoice date falls on 15th or last day of month, the invoice date is used as the starting point.
Week: The system uses the date of the Saturday after the invoice date as the starting point for discount/due date calculations or the invoice date if it is Saturday. You can use this calculation so that the payment due date always falls on a Saturday of the following month, depending on the invoice date.
No of Periods
Indicate the number of periods to take into account when calculating the due date.
Supplementary Days
Specify the number of days that should be added to the normal calculation date. This value applies only when you select the period type Month.
Min Due Days
Specify the minimum number of days in which the payment must be made. This prevents creating invoices with unreasonable due dates. If an invoice is created near the end of the month and a due date is set for the end of the month, it is not reasonable to expect it to be paid. If the number of days between the invoice creation date and the end of month is less than the minimum number of due days, the payment due date is moved to the next period.
Example: An invoice is created on October 31 with credit terms specifying payment at the end of the month, with due days of 10, and minimum due days of 15. Using these terms, the due date is calculated as November 10 (October 31 + 10). Next, the system compares the minimum due days (15) to the difference between the due date and the invoice date (November 11 – October 31). The difference is less than the minimum due days, so the due date is moved to the next period. In this case, the original due date of November 10 is changed to December 10.
Base Date/Fixed Due Date
Specify a base date to be used as the start date for the due date calculation, instead of the invoice creation date. Do this in situations where goods are shipped in advance of a negotiated invoice date but payment is made relative to the invoice date.
The system uses the later of the invoice date and base date as the starting point for the due date calculation and the earlier of the base date and invoice date as the starting point for the early payment discount date calculation.
When creating credit terms with a fixed due date, specify the due date. See
Creating Credit Terms with Fixed Due Dates.
Base Days
Specify the number of calendar days by which the due date and early payment discount date are extended. When the system calculates due or discount dates, it appends Base Days to the calculated date.
Grace Days
Specify the number of days to be added to the financial due date of an invoice, after which interest charges are calculated.
Terms Interest Percentage
Specify a percentage to be used to calculate an amount to be added to the item list price. This percentage is based on the number of days to pay that are defined in the credit terms. When terms interest is used, it accrues the estimated inflation increase in sales and purchases.
Terms interest is typically used in hyperinflation environments to calculate an advance estimate of the currency gain/loss in the hyperinflationary currency.
• For purchasing, GL terms interest entries are created at PO receipt and update interest accrued and applied accounts specified in Purchasing Accounting Control (36.9.5).
• For sales, GL terms interest entries are created at invoice post, and update accrued and applied interest accounts set in Sales Order Accounting Control (36.9.6).
Daily Overdue Int Percentage
Specify an interest percentage to be charged per day for overdue payments. This option is used in specific accounting environments only, and is used in EDI Advanced Banking.