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The Office System allows users to create an unlimited amount of Payment Terms depending on their needs. Payment Terms are assigned to a Vendor, and specify the time period in which a Vendor’s invoice must be paid, and if applicable a discount that applies if paid within a certain period of time. In this guide, we will discuss how to access and create new Payment Terms, as well as other aspects of the Office System in which Payment Terms have a direct impact. Use Case(s)
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1) Select Accounts Payable across the top toolbar and select Payment Terms.
2) The Vendor Payment Terms Grid will launch.
3) The primary functions associated with managing Vendor Payment Terms are embedded in the Payment Terms setup screen, which can be accessed by double-clicking on an existing Term, or clicking the New button.
Creating a New Payment Term
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Right-click anywhere on the Vendor Payment Terms Grid and select New.
2) The Vendor Payment Terms setup screen will launch.
3) Please follow instructions for each item below:
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3) Due On - The selection here tells the system what to use when setting the Due Date of an invoice using this Term. Most commonly, this is set to either Use Net Days, or Use Discount Days. For invoices due on a specific day of the month, please see note below.
4) Net Days - The number of days after the invoice date that the invoice is due.
5) Discount Days - Enter the number of days after the invoice date that the invoice can be paid and receive the discount.
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Please Note: For more information on Managing Vendors, please see our Manage Vendors Manual. For more information on Entering Invoices, please see our Managing and Entering Vendor Invoices Manual.
Pay Bills
When Paying Bills, discounts are calculated automatically by the system based on the Payment Terms of the invoice. The Discount column will automatically populate if the check date meets the criteria of the discount terms.
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Please Note: For more information on Paying Bills, please see our Pay Bill and Print Checks Manual.
Best Practices
Periodically review established Payment Terms to ensure list is comprised of unique terms, rather than duplicates (worded slightly differently).
Use consistent naming convention when establishing payment terms to improve usability within the Accounts Payable module (ie - N30, N15, N10 vs. Net 30, N15, Net10 etc).
For more information on Paying Bills, please see our Pay Bill and Print Checks Manual.
For more information on Entering Invoices, please see our Managing and Entering Vendor Invoices Manual.
For more information on Managing Vendors, please see our Manage Vendors Manual.
FAQs
Q: How do I set up a payment term to always pay on the 25th of the same month in which I am entering an invoice (rather than the following month)?
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