Chapter 2: Initial Setup File Maintenance
Option 7Terms
Use this function to enter and edit Terms records. Terms records not only determine when the invoice is due, but also define the service charge percent, if any.
When you use this function, a record of all entries will be printed. For additions, all new field contents are printed; for deletions, the deleted record’s contents are shown; for changes, both old field contents and new field contents are shown; and in all cases, the User ID, date, and time are printed.
The screen shown below presents information about Customer Terms.
This field contains days and codes used to calculate when invoices are due. It also contains days, service charge minimums, and service charge percentages.
Initial Setup Terms screen
When the key value for a particular record is requested, you can review all the records in the file by selecting the Scan option. The records will be presented on an “Access” screen, and you will be allowed to scan the available data until you find the record you want. Then, position the cursor by that record and press ENTER; the record will be displayed for editing.
Note that the Audit Info option is available at the bottom of this screen. When this option is invoked, the Audit Information overlay appears and displays the date the record was created and who created it, as well as the date the record was last modified and who modified it. Press the END key or the RETURN key to clear the overlay from your screen. The information displayed in the Audit Information overlay is system-supplied and non-modifiable.
Data items for the preceding screen are described below:
- Terms Code
Positive number, up to 3 digits Scan by this field (access key)
Supply a unique code for each Terms record.
- Description
Alphanumeric, up to 16 characters Required
Describe the terms. For example, “2/10, net 30'. This field is printed on the invoice.
Describe the terms. For example, "2/10, net 30." This field is printed on the invoice.
- Discount Percentage
Positive number, up to 2 digits and 3 decimals
Supply the discount percent for these terms. For example, two and one-half percent would be entered as ‘2.5’. This percent is for your information only; the system does not directly calculate the terms discount.
- Service Charge Rate
Enter a positive number with 1 digit to the left of the decimal and 2 digits to the right of the decimal.
Identify the monthly percentage rate at which service charges are accumulated when an invoice is past due. For example, if service charges are accumulated at one and one-half percent per month, enter ‘1.5’.
- Service Charge Minimum
Enter a positive number with up to 2 digits to the right of the decimal.
Define the minimum amount that will be charged when service charges are calculated. If the calculated service charge is under the minimum, the system will increase the calculated charge to the minimum charge. If you are calculating service charges by invoice (“Summarize Service Charges?” = ‘N’ on your Parameters file), this is the minimum amount charged per invoice.
- Service Charge Days
Positive number, up to 3 digits
Identify the number of days that an invoice must be past due before service charges are applied. Once this number of days has been reached and service charges have been generated, the amount of the service charge is calculated with reference to the invoice due date. The formula for service charge calculation is:
Service Charge = Overdue Balance * Service Charge Rate / 100
- Receipt Code (Discount)
Positive number, 1 digit
Supply a code to indicate the date from which the payment days are counted in calculating discount dates. Valid codes are:
- 1
- From the invoice date
- 2
- From the last day of the month
- 3
- From a specific day or days of the month (for example, the 15th or the 25th)
- NOTE
- This data is for your information only; the system does not directly calculate the items discount.
- Receipt Code (Net)
Positive number, 1 digit
Supply a code to indicate the date from which the payment days are counted in calculating due dates. These codes are:
- 1
- From the invoice date
- 2
- From the last day of the month
- 3
- From a specific day or days of the month (for example, the 15th or the 25th)
- “Within” Days (Discount)
Positive number, up to 3 digits
Define the number of days within which invoices must be paid in order to qualify for the discount. If no discount terms are offered, this field is not required. This data is for your information only; terms discounts are not directly calculated by the system.
- “Within Days (Net)
Positive number, up to 3 digits
Supply the number of days within which invoices must be paid in full.
- Specific Days of Month (Disc)
Positive number, up to 2 digits
Supply the day of the month from which the payment days are to be counted for discounts. You may enter up to two dates for discounts. This field is used if you entered a code of ‘3’ in the Receipt Code (Discount) field. This data is for your information only; terms discounts are not directly calculated by the system.
For example, assume that the Specific Days (Disc) are 10 and 25, and the Specific Days (Net) are 25 and 10. In this example, invoices dated from the 25th of the month through the 9th of the next month have their discount due date as the 10th of the month, and the net invoice is due on the 25th; and form invoices dated from the 10th of the month to the 24th, their discount due date is the 25th of the month, and their net due dates are the 10th of the next month.
- Specific Days of Month (Net)
Positive number, up to 2 digits
Supply the days of the month from which the payment days are to be counted for net payments. You may enter up to two dates for net payments. This field is used if you entered a code of ‘3’ in the Receipt Code (Net) field.
For example, assume that the Specific Days (Disc) are 10 and 25, and the Specific Days (Net) are 25 and 10. In this example, invoices dated from the 25th of the month through the 9th of the next month have their discount due date as the 10th of the month, and the net invoice is due on the 25th, and for invoices dated from the 10th of the month to the 24th, their discount due date is the 25th of the month, and their net due dates are the 10th of the next month.
The entered data is validated. During validation, including access to other fields, conditions may be found which cause messages to be displayed. Errors (E), Warnings (W), and Messages (M) that may result are shown below:
Press ENTER to save the information on this screen.
Select the Next Record option to go to the next Customer Terms record.
At this screen, the use of the MODE keys - ADD, DEL, CHG, or INQ - pertain to those records in the Customer Terms file.