Option 2Terms

The Terms file contains a set of standard payment schedules and discount terms that are assigned to vendors. By specifying “discount days” and “net days,” you can set limits on when an invoice must be paid in order to receive a discount, and when the net invoice amount is actually due. After you end Initial Setup, during invoice entry the system computes and enters the discount amount and due dates for the invoice according to the terms code assigned to the vendor on the invoice.

The due dates for discount and net invoice payments are defined by a payment code. This code specifies whether the system calculates this date based on the invoice date, the end of the month, or up to two specific days in the month.

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 RETURN; the record will be displayed for editing.

Data items for the preceding screen are described below:

Terms Code

Enter a code of up to 3 digits to identify this Terms record. This is the code that will be used to recall or reference this record elsewhere in the system.

Description

Enter up to 16 characters to describe the payment terms (for example, ‘2/10, net 30’).

Discount %

Enter the discount percentage for this Terms record. You can enter up to 6 characters, including the decimal point and up to 3 decimal places. For example, 2 1/2% would be entered as ‘2.5’.

Payment Code

Enter one of the following codes to indicate the date from which the payment days are counted:

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)

Enter the number of days within which invoices must be paid in order to qualify for the discount percentage.

“Within” Days (Net)

Enter the number of days within which invoices must be paid in order to avoid service charges.

Specific Days of the Month

If you entered ‘3’ in the Payment Code field, enter the date(s) of the month from which the payment days will be counted. You can enter up to two dates for discounts and two dates for net payments.

Below is a sample screen showing how you might enter Specific Days of the Month.

In this sample, two sets of terms are defined:

• For invoices dated from the 25th through the 9th, the discount due date is the 10th and the net invoice due date is the 25th.
• For invoices dated from the 10th through the 24th, the discount due date is the 25th and the net invoice due date is the 10th.

The entered data is validated. Press RETURN to save the information on this screen.

Select Next Record to go to the next Terms record.

At this screen the use of the MODE keys—ADD, DEL, CHG, or INQ—pertain to those records in the Terms file.