Payment Terms Maintenance

Use this form to define payment terms that are assigned to customer and supplier master files. The Payment Date that displays on the AR and AP Invoice Entry form is calculated based on the payment term that is of the customer or supplier. You can change the payment date during invoice entry.

Code

Enter a code, up to 30 alphanumeric characters, to define the payment term you are setting up.

Description

Enter a description, up to 50 alphanumeric characters, to define the payment term you are setting up.

Payment Terms

Select one of these pre-defined payment terms types:

• Days from end of month - Greentree Desktop prompts you to enter the number of days from the end of the month (based on the period end date of the invoice) within which payment is made.
• Last day of following period - Payment is expected on the last day of the period following the period of the invoice posting date.
• Days credit from invoice date - Greentree Desktop prompts you to enter the number of days from the invoice date in which payment is made.
• Pay on invoice - Payment is expected immediately, using the invoice date.
• Bad debtor - Payment is expected immediately, using the invoice date. If a customer has this payment term assigned to it, the customer does not appear in any dropdown list in transaction entry forms. For example, you can't select the customer on the AR Invoice Entry form. You can select the customer displays on maintenance forms.
• Cash only - Payment is expected immediately, using the invoice date. You can change the date on transactions if this payment term applies.

Number of days

If either Days from end of month or Days credit from invoice date is selected as the payment term, you must enter the number of days.

Allow date change on transactions

Select this option to change the-calculated payment date during invoice entry. If you don't select this option, the date is read-only.

Prompt payment

You can define prompt payment discounts for payment term types. If prompt payment terms are of the payment term assigned to a customer or supplier, a Prompt Pay date displays in the transaction entry form, which is calculated using the option you select.

You can only change the prompt pay date during invoice entry if the Allow date change on transactions option is selected. Otherwise, the date displays in read-only format when you enter a transaction.

As you select invoices to include in the process on the AP Payment Entry and AR Receipts Entry forms, Greentree Desktop compares the prompt pay date of the invoice transaction, and the date of the payment or receipt.

If the date of the payment or receipt is before the prompt pay date, a discount is calculated using the payment terms. The discount value displays in the Items Paid table when you select the invoice for payment or receipt. You can change the calculated discount amount before saving the transaction.

The prompt payment options are:

• No Discount - Select this option if no prompt payment discount applies to the selected term.
• Days from end of month - Select this option if a prompt payment discounts applies to payments or receipts made before the date implied by the Days from end of month payment terms assigned to the invoice.
• Last day of following period - Select this option if a prompt payment discount applies to payments or receipts made before the date implied by the Last Day of Following Period payment terms assigned to the invoice.
• Days credit from invoice date - Select this option if a prompt payment discount applies to payments or receipts made before the date implied by the Days Credit from Invoice Date payment terms assigned to the invoice.
• Pay on invoice - Select this option if a prompt payment discount applies to payments or receipts made before the date implied by the Pay on Invoice payment terms assigned to the invoice.
• Number of days - If either Days from end of month or Days credit from invoice date is selected as the prompt payment terms, you are prompted to enter the number of days here.
• Discount - For any prompt payment type other than No Discount, enter the discount percentage that applies to the terms code you have selected.
• Allow date change on transactions - Select this option to change Greentree-calculated prompt pay date during invoice entry, otherwise the date is read-only.

Note: When the AP Print Payment Selection report runs, you can enter a Payment Date (for prompt payment calculation). Use this to indicate on which date a payment is made, so that the amount to pay (including discounts) is calculated and displayed on the report, based on the date you expect to make the payment.

If the Reduce tax for prompt payment discount option is selected on the Tax Code form (Tax Location form for North American tax), the tax received is reduced by the tax component of the prompt payment discount.