Payment Term
A Payment Term says when a vendor invoice must be paid. One line is one instalment: a percentage of the invoice due after so many days, and the balance on the last line. Each instalment becomes a separate line a payment can clear.
What it is for
The invoice's Baseline Date plus the days of the lines give the due dates. The invoice's Due Date shows the first instalment's date. A payment lists every instalment separately (the Schedule column).
The rule people get wrong: the days on each line add up. A term of 50 percent at 30 days and Balance at 30 days makes the second instalment due 60 days after the baseline.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Payment Term | The code | Required, unique |
| Name | The name | Required |
| Predefined | Delivered with the system | Read only. A predefined term cannot be deleted |
| Block | Stops it being picked | Tick to block |
Days, Payment Day and Account Layer are configured but hidden. Payment Day is not read by anything.
Basic Data grid
| Column | What it means | What to put |
|---|---|---|
| Line # | The instalment | In order |
| Due Condition | Percentage, or Balance | Balance must be the last line and used once. Fixed is not offered |
| Value | The percentage | Empty on the Balance line |
| Days | Days after the previous instalment | Must be more than zero from line 2 on. Line 1 may be zero for "due on the baseline date" |
Terms & Conditions
Terms Notes: free text.
How to configure it
- Immediate: one line, Balance, 0 days.
- Net 30: one line, Balance, 30 days.
- 40 percent at 30 days, rest at 60: line 1 Percentage 40, 30 days; line 2 Balance, 30 days.
- Percentages may add up to exactly 100 without a Balance line.
Scenarios
- A supplier gives 45 days. One Balance line at 45 days, set on the vendor.
- A contractor is paid in three stages. Percentage 30 at 0 days, Percentage 40 at 30 days, Balance at 30 days. A payment shows three instalments.
What it is connected to
- Release Vendor In Legal Entity: the vendor's term.
- Vendor Invoice: uses it for the due date and instalments.
- Payment: pays instalment by instalment.
If something looks wrong
- "Either Total percentage should be 100 OR Add Balance Due Condition" Add a Balance line.
- "Balance must be add in due condition" Percentages under 100 need a Balance line.
- "Line ID: ...: Balance should be on the last line." Move it.
- "Balance can only be set once", "The maximum percentage for the totals cannot exceed 100".
- "Line ID: ... - Days must be greater than zero" Lines after the first need days.
- "Payment Term ... is not defined correctly. Schedule not calculated" on an invoice: an instalment came out at zero. Check the lines.
- "Payment Term - cannot delete this Payment Term as it's predefined".