Accounts Payable Terms Setup
If you take advantage of payment discounts, terms and discounts need setup.
NAVIGATION: MAINTAIN menu > Terms Code
- Enter a unique Terms Code for the new AP terms and a corresponding description. TAB to Effective Date.
- Effective Date is optional. you may enter a future date here to signify when the new terms will go into effect.
- Enter any optional Notes to further describe the terms.
- Select either ELAPSED or FIXED for the type of terms by placing a check in only one of these boxes. These choices are described on the Terms entry screen.
- Complete the date and percentage fields:
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- Number of days or fixed day of the month would normally be between 1 and 31. If using number of days, you would enter the number of days the invoice is due at discount after the date of the invoice.
- The discount percentage would be entered as a whole number. For example 2.0% should be entered as 2.0.
- The "Discount Days" should be the same value you entered in the "Number of Days" field.
REQUIRED: To use discounts - a discount GL account must be set up in the Pay Group Master. See Pay Group Master - Setup a Pay Group
12/2023