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Overview
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The Office System allows users to group their Vendors by Category. By selecting a Vendor Category, this provides users a greater level of detail for reports. This information can be very helpful for future reference, especially if the user has a particular Category of Vendors they use for certain expenses. For example, Titleist is a vendor most Clubs use strictly for the Pro Shop. By creating a Category called Golf, the user can filter a report that only shows Vendors and costs associated with the Golf/Pro Shop. If the user has a large number of Vendors and wants to pull reports on just a certain aspect of their business, creating a Category will allow for reports to be pulled rapidly. Please Note: Vendor Categories are a required field when creating new Vendors. With this said, it is important to keep Vendor Categories clean and easy to track..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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Content
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Accessing the Tool
To access Vendor CategoriesPayment Terms:
1) Select Accounts Payable across the top toolbar and select , CategoriesPayment Terms.
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2) The Vendor
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Payment Terms Grid will launch.
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3) The primary functions associated with managing Vendor
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Payment Terms are embedded in the
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Payment Terms setup screen, which can be accessed by double-clicking on an existing
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Term, or clicking the New button.
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Creating a New
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Payment Term
To create a newVendor Category Payment Term:
1) Navigate to the Vendor Categories Payment Terms Grid and perform either of the following to launch the Vendor Category Payment Term setup screen:
Option 1
Click the New
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icon on the toolbar.
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Option 2
Right-click anywhere on the Vendor
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Payment Terms Grid and select New.
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2) The Vendor
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Payment Terms setup screen will launch.
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3) Please follow instructions for each item below:
1) Name - Enter a Name
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FAQs
Q: What reports are most useful when wanting to view expenses or purchases by Vendor Categories?
A: Vendor Aged Open Invoice is a report that can provide open invoices by Vendor Category. The data genie would be the best tool to use to build a customized report to view purchases by Vendor category and it is very simple to build.
Q: What is the best way to see all Vendor Categories I currently have?
A: The Vendor Categories grid will display all current Vendor Categories. If you would like to see all vendors within a certain Vendor Category, you can use the Manage Vendors Grid and filter by Vendor Category. Once the grid is filtered users can export the grid to excel.
Best Practices
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that describes the Term.
2) Description - Enter a Description that provides more information about this set of Terms.
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.
6) Discount Percentage - Enter the percentage discount that will be deducted from the invoice, if paid on or before the discount date.
Please Note: The Office System has the capability to account for invoices that will always be due on a certain day of the month. When a day of the month option is selected, the user has the option to include invoices for the current month by selecting the Include Current Month check box. If Include Current Month is unchecked, invoices will be due on the specified day (1st, 2nd, 3rd etc.) of the following month from when the invoice was entered.
Payment Terms - Other Accounts Payable Implications
Payment terms interact with other functions of the Accounts Payable module. In this section we will discuss the related implications.
Manage Vendors/Enter Vendor Invoices
Payment Terms are a required field when creating a new Vendor
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. This helps quicken the Invoice Entry Process as the Terms selected on the Vendor will automatically populate when an invoice for this Vendor is entered.
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.
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)?
A: When a day of the month option is selected, select the option to include invoices for the current month by selecting the Include Current Month check box.
Q: What are the most commonly used Payment Terms?
A: The following are commonly used Payment Terms:
COD - Cash on delivery
Net 7 - Payment seven days after invoice date
Net 10 - Payment ten days after invoice date
Net 30 - Payment 30 days after invoice date
1% 10 Net 30 - 1% discount if payment received within ten days otherwise payment 30 days after invoice date
2% 10 Net 30 - 1% discount if payment received within ten days otherwise payment 30 days after invoice date
21 MFI - 21st of the month following invoice date
Downloadable Guide