Set Up Receivables and Payables

There are a number of features that you can set up to help you manage receivables and payables.

You must set up payment terms to calculate due dates and payment discounts.

You can specify a grace period after the payment discount date has passed, during which you will accept a payment discount.

You can set up payment methods to specify how an invoice will be paid, and you can specify a balancing account for each payment method.

You must set up finance charge terms if you want to calculate interest or finance charges. You can use reminders to remind customers of overdue amounts, and to calculate interest or finance charges. You can use finance charge memos to inform customers about interest and finance charges without reminding them of overdue amounts. If you want to use reminders, you must set up reminder terms, reminder levels, and reminder text. If you want to use finance charge memos, you must set up the text for the memos.

The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.

To See

Automatically round invoice amounts, for example, to an amount divisible by 0.05.

Set Up Invoice Rounding

Set up payment terms to manage due dates and to calculate payment discounts.

How to: Set Up Payment Terms

Decide whether payment discounts are based on the invoice amount with or without VAT.

How to: Determine Base Amounts for Payment Discounts on Sales

Revert the payment discount part of the VAT amount when the payment discount is granted.

How to: Revert VAT on Payment Discounts

Determine whether discount amounts are subtracted from the invoice amount or posted separately.

How to: Select a Principle for Posting Purchase Discounts

Grant payment discounts after the payment discount date has passed.

Payment Tolerance and Payment Discount Tolerance

Set up payment methods that you can assign to customers and vendors.

How to: Set Up Payment Methods

Set up the conditions for finance charge calculations.

Finance Charge Terms

Set up reminder terms, levels, and text.

Set Up Reminders

Specify text that will be printed before or after the entries on the finance charge memo.

How to: Set Up Text for Finance Charge Memos

See Also


How to: Set Up Tolerances