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Accounts payable

Set up payment terms

  1. Select
    Setup
    ,
    Firm Information
    , then
    Payment Terms
    .
  2. In the Identification section, enter a unique
    ID
     and
    Description
     for the payment term.
    note
    Up to 11 alphanumeric characters for the unique
    ID
     and up to 30 alphanumeric characters for the
    Description
    .
  3. Choose the method for calculating the discount.
    • Choose
      Amount
       to have the application use a fixed discount amount. The application will show the discount amount as a dollar value.
    • Choose
      Percentage
       to have the application calculate the discount amount as a percentage of the invoice amount, minus any non-discounted amount. The application will display the discount amount as a percentage.
  4. In the Discount Date section, choose the day on which to base the discount date calculation.
    • Choose
      Days based
       to have the application calculate the discount date based on a specific number of days after the payable or receivable date, and then enter that number in the associated field.
    • Choose
      End-of-Month (EOM) based
       to have the application calculate the discount date based on a specific number of days from the end of the month. Select the month on which to base the calculation and the number of days from that month end.
    note
    The following are EOM examples.
    • EOM
       represents the last day of the current month.
    • EOM+1
       represents the last day of next month;
    • EOM+2
       represents the last day of the month after next and so on.
    When specifying the number of days from the end of month, a positive number indicates the number of days after the last day of the month. A negative number indicates the number of days before the last day of the month.
    For a transaction with a payable or receivable date of January 10:
    • If you select
      EOM
       and
      15
      , the discount will expire on February 15.
    • If you select
      EOM
       and
      0 (or blank)
      , the discount will expire on January 31.
    • If you select
      EOM+3
       and
      -15
      , the discount will expire on April 15.
  5. In the Due Date section, choose the day on which to base the due date calculation.
    • Select
      Days based
       to calculate the due date based on a specific number of days after the payable or receivable date then enter that number in
      Number of days from transaction
      .
    • Select
      End-of-Month (EOM) based
       to calculate the due date based on a specific number of days from the end of the month. Select the month to use for the calculation, specify the number of days from that month end, and specify a
      Cutoff day
      .
    note
    The cutoff day is the day after which the due date for payables or receivables will be moved to the following month. The following are cut off day examples.
    For a payment term with the following due date settings:
    EOM
    ,
    10
    , and
    20
    :
    • If the payable or receivable date is
      March 9
      , it is before the cutoff date, so the due date is
      April 10
      .
    • If the payable or receivable date is
      March 20
      , it is the same as the cutoff day, so the due date is
      April 10
      .
    • If the payable or receivable date is
      March 21
      , it is after the cutoff day, so the due date moves to the next month (
      May 10
      ).
  6. Select
    Enter
     to save the payment term.

This article applies to:

  • Product: Accounting CS,Accounting CS Client Access

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