Types of Credit Terms
Two types of credit terms can be defined:
• Normal, for specifying the due date and any settlement discount that may be given for early payment
• Staged, indicating that multiple payments are made in stages based on invoice percentages:
• A first amount (x percent) will be paid on due date MMDDYYYY.
• A second amount (y percent) will be paid on due date MMDDYYYY.
• A third amount (z percent) will be paid on due date MMDDYYYY.
One credit terms code can contain a combination of types. For example, a long-term construction contract may specify a series of staged payments, with discounts for early payment to be applied to each stage. You can create a credit terms code that defines the stages and the discounts within one structure.
Note: When you create a staged credit terms code, the codes that apply to each stage must be of type Normal.
Aging analysis functions take into account the individual amounts and due dates, and show each amount in a separate due column. Payment selection functions also account for the individual amounts and due dates, and select for payment only the part that is actually due.
When staged terms apply to the invoice, the Staged button is enabled in the Supplier Invoice activity.
Supplier Invoice
Clicking the Staged button displays the various components of the staged credit terms and lets you modify the percentage applied to each.
Staged Credit Terms in Invoice
When a staged credit terms code applies, the system calculates and displays default values, which you can modify as needed.
Each line contains a due date, a percentage, and an amount. When the percentage is entered, the amount is calculated as the percentage of the invoice total. If you modify the amounts, the system verifies that the sum of all amounts entered equals the invoice total or an error displays.
Each due date on the grid must be unique.
When a payment selection is created, you can select invoices based on due date. For invoices with a multi-stage credit terms code, only the due part of the invoice is selected in the payment selection.
