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Setting up Payment Terms

You can enter the standard payment terms that you negotiate with your suppliers (for example, net 30 days). When they are entered here, you can select the appropriate term when you create purchase orders and invoices.

To Set up Payment Terms

1.	From the Site window, select the Administration menu and then Purchasing Management Settings. The Purchasing Management Settings dialog appears.

Tip: You can also access purchase management settings from the Site window by selecting the Purchasing view, Settings tab, and the Purchase Order Management Settings node in the tree.

2.	Select the Payment Terms tab. This tab shows a list of payment terms.

3.	Click New. The Payment Term dialog appears.

4.	Enter the payment term settings:

Setting Name

Description

Name	The name of the payment term. You can enter up to 50 characters. If this box is left blank, an error message appears.

Discount percent

The percentage of the discount associated with this payment term. For example, if the term is 1% 10, net 30, you would enter a discount of 1.

Term type

Select the type of payment term: • Day of the month: Invoices using this term are always paid on selected days during each month. For example, you may always pay your invoices on the 1st and 15th of the month. • Number of days: Invoices using this term are always paid a certain number of days after the invoice date. When you select this type, you can enter the number of days until payment is due, and the number of days you will receive a discount (optional).

Days until due with discount

The number of days until the discount date when this term is used. For example, if the term is 1% 10, net 30, you would enter 10 days. The system uses this number to calculate the invoice’s discount due date (the date by which payment is required in order to receive a discount). The discount date is calculated by adding this number of days to either the invoice date, the invoice received date, or the most recent expense date (as set on the payment term). This setting is only applicable to payment terms using the Number of days terms type.

Days until payment without discount

The number of days until payment is due when this term is used. For example, if the term is 1% 10, net 30, you would enter 30 days. The system uses this number to calculate the invoice’s payment due date, by adding this number of days to either the invoice date, the invoice received date, or the most recent expense date (as set on the payment term). This setting is only applicable to payment terms using the Number of days terms type.

Terms are Based on

Which of the invoice’s dates is the basis for its due date: • Invoice date: the days until due is added to the invoice date to calculate the due date • Invoice received date: the days until due is added to the invoice’s date received to calculate the due date • Most recent expense date: the days until due is added to the latest expense date on the invoice’s lines. For example, if the invoice is matched to six receipts, the date on which the latest of the receipts was received is used. This setting is only applicable to payment terms using the Number of days terms type.

Days of the month paid on

Enter on which days of the month invoices are paid. The system will calculate the next available payment date based on the date the invoice is entered into the system. For example, if you create an invoice on September 13th, and the days of the month are set to 15 and 30, the invoice payment date is set to September 15th. However, if you create an invoice on September 20th, the payment day is set to September 30th. This setting is only applicable to payment terms using the Day of the month terms type.

5.	When you are finished, click OK to save the payment term.

6.	Repeat steps 3 to 5 for all of your payment terms.