Payment terms

Create payment terms

1. In the Navigation pane, highlight the Accounts Receivable > Setup > Terms folder.
2. Click . The New Terms window opens.

   

3. Enter a unique Code for the payment terms.
4. Enter a Description for the payment terms.
5. In the Due Date Days field, enter the number of days from the due date reference date (end of month or invoice date) until payment is due.

6. By default, ActivityHD uses the last day of the calendar month as the basis for calculating the due date and discount dates for the "End of Month" method. You can, however, base your end-of-month payment terms on a different cutoff date. This is called proximo or prox dating. If you use prox dating, enter the day of the month to base the end of month on for these payment terms in the End of Month Day field. Leave this field blank if you want to use the actual last day of the month.

   Note

   If the day you specify here is greater than the last day of the month, the actual last day of the month is used. For example, if you enter "30", the 30th of the month is used for the due date calculation for all months except February. For February, "28" or "29" is used, depending on whether it's a leap year. Entering "31" here is equivalent to leaving the field blank.

7. In the Due Date Reference field, select which reference date to base the due date determination on. Your options are:
   • End of Month. If the invoice date falls before the End of Month Day, the current month's end-of-month day is used as the starting point for calculating the due date. If the invoice date falls after the End of Month Day, next month's end-of-month day is used as the starting point. In either case, Due Date Days is added to the End of Month Day to determine the invoice due date. If the End of Month Day is "25" and the invoice date is 07/20, then 07/25 is the starting point. If the invoice date is 07/27, then 08/25 is the starting point.
   • Invoice Date. The due date is determined by adding Due Date Days to the invoice date.
8. In the Discount Reference field, select which reference date to base the discount calculation on. Your options are:
   • End of Month. If the invoice date falls before the End of Month Day, the current month's end-of-month day is used as the starting point for calculating the discount date(s). If the invoice date falls after the End of Month Day, next month's end-of-month day is used as the starting point. In either case, Discount Date Days is added to the End of Month Day to determine the discount date(s). If the End of Month Day is "25" and the invoice date is 07/20, then 07/25 is the starting point. If the invoice date is 07/27, then 08/25 is the starting point.
   • Invoice Date. The discount date(s) is determined by adding Discount Date Days to the invoice date.
9. In the Discount Dates table, enter the discount terms associated with the payment terms. If there are no discount terms, leave this area blank.
   Enter as many discount lines as you need. Percentages should decrease from top to bottom.
   1. In the Days column, enter the number of days from the discount reference date to allow for payment to be made in order to claim a discount.
   2. In the Percent column, enter the discount percentage available if payment is made by the corresponding discount date. The actual amount of the discount is determined by multiplying the percent times the discount basis.
10. Save the new payment terms.