How to: Set Up Payment Terms

For each payment term, you can specify if the payment can be made in installments. For example, you can define that a payment can be made in three installments with a third of the payment due after 30, 60, and 90 days.

If a payment term must be paid in one installment, you must still specify how the due date will be calculated.

To set up payment terms

  1. In the Search box, enter Payment Terms, and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Code

    Specify the unique identification code for the set of payment terms. You can enter a maximum of 10 alphanumeric characters.

    Payment Nos.

    Specify the number of installments allowed for this payment term.

    Description

    Specify the payment term code description. This description is printed where the payment terms are used.

  3. On the Home tab, in the Process, choose Calculation.

  4. In the Payment Terms Lines window, fill in the fields as described in the following table.

    Field Description

    Payment %

    Specify the percentage of the total payment that this installment is for.

    For example, if the payment must be made in one installment, specify 100.

    Due Date Calculation

    Specify the formula that is used to calculate the date that a payment must be made.

    For example, if the payment must be made in one installment after two weeks, specify 14D. For more information, see How to: Enter Dates and Times.

    Discount Date Calculation

    Specify the formula that is used to calculate the date that a payment must be made in order to obtain a discount.

    Discount %

    Specify the discount percentage that is applied for early payment of an invoice amount.

  5. Choose the OK button.

    The Payment Nos. field in the Payment Terms window is updated. The payment terms that you set here will be a reference for automatic due date calculation for documents that you post for relevant customers and vendors.

See Also

Tasks

How to: Set Up Automatic Payments and Automatic Bills

Concepts

Italy Local Functionality

Other Resources

Payment Terms