Use Terms to maintain the sales terms that you extend to your customers and that your vendors extend to you. Each term can apply to customer transactions only (for sales to your customers), vendor transactions only (for purchases from your vendors), or both customer and vendor transactions.
A term definition consists of a description (for example, 2% 10, Net 30), how the term is used (customer transactions, vendor transactions, or both), a discount percentage (optional) for payment by a certain date, and the payment discount method. Each term also includes an Active option that determines whether the term can be used for transactions. With this option, you can define terms but make them unavailable for use until you are ready.
The terms that you define in Terms appear on lists throughout the financial screens. Which terms are listed depends on their use: customers, vendors, or both. The terms apply company wide. Each of your internal companies cannot have its own set of terms.
Setting Up Terms
Select Financials | Setup | Terms.
Click New to create a new kind of term.
In Description, specify a description for the term.
In Where Used, select when the term can be used. The valid options including the following:
Customers and Vendors – represents that the term may be used for both customers and vendors
Customers Only – represents that the term is available to be used for customers only
Vendors Only – represents that the term is available to be used for vendors only
Click to select the Active check box if the term should immediately be available for use.
In Discount Rate, type a percentage. Whole percentages and decimal percentages up to two positions are allowed. For example, typing “5.25” equates to 5.25%.
In Discount Date Method, select one of the following methods:
None - there is no discount defined for this term
Day of Month – the System calculates the due date and discount date based on the day of the month. For example, the invoice is received the 1st of the month. It is due by the 15th of the month. If you pay the invoice by the 5th of the month, you receive a discount.
Due Date – the System calculates the due date and discount date based on a number of days from the invoice date. For example, the invoice is due within 30 days of the invoice date and you receive a discount for paying within 10 days of the invoice date.
End of Month – the System calculates the due date based on a number of days after the end of the month and the discount date based on the number of days after the invoice date. For example, the invoice is due within 10 days after the end of the month. If you pay within 5 days of the end of the month, you receive a discount.
In Discount Date, enter the date the discount is based on.
In the Due Date Method area (enabled when Discount Method is Due Date), specify the following settings:
In Days After Invoice Date Before Due, specify the number of days after the invoice date that the invoice payment will be due.
In Days After Invoice Date for Discount, specify the number of days after the invoice date the payment is eligible for a discount. If the invoice is paid within this number of days, the discount will be calculated.
In the Day of Month Method area (enabled when Discount Method is Day of Month), specify the following settings:
In Due by Day of Month, specify the day of the month the invoice becomes due.
In Discount to Day of Month, specify the day of the month the invoice remains eligible for a discount. If the invoice is paid before this day of the month, the discount will be calculated.
In Due Date, enter the date the payment is due.
In the End of Month Method area (enabled when Discount Method is End of Month), specify the following settings:
In Days After End of Month Before Due, specify the number of days after the end of the month the invoice payment will be due.
In Days After Invoice Date for Discount, specify the number of days after the invoice date the payment is eligible for a discount. If the invoice is paid within this number of days, the discount will be calculated.
Click Save and New, or click Save and then click New, to save the current terms and start adding the next.
A: The term is currently being used somewhere in the System. You can only delete items that are not being used.
A: Type 0.00 in Discount Rate, select Due Date in Discount Method, type the number of days after the invoice date by which an invoice must be paid in Days After Invoice Date Before Due, and then type 0 in Days After Invoice Date for Discount.
Q: Does Terms support the Send and Notes commands?Q: Does Terms support the Send and Notes commands?
A: Both Terms and Term support the Send command. However, neither supports the Notes command.