AR Payment Terms Setup

Application: Setup Item:

Receivables Payment Terms AR-16

R2i Checklist Step:

Payment Terms, which may be set-up in Receivables or Order Management, identify when payments are due from customers. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. Credit Checking must be enabled for the Payment Term (as well as for the Order Type and for the Customer) in order for credit checking to occur on a sales order. The following Payment Terms are delivered with R2i: 30 NET 100% due in 30 days IMMEDIATE 100% due immediately 2/10 NET 30 A 2% discount is offered if payment is received within 10 days, the entire amount is due within 30 days Due 10th, cut 25th Due on 10thof following month if received by the cutoff day 25th Last day of Month Due on last day of following month Due 15th Due on 15th of the next month COD Cash on Delivery

AR Payment Terms Setup

In Receivables Responsibility: Navigate to: Setup > Transactions > Payment Terms The following is the example for the 30 NET Payment Term. Note that 100% of the amount is due within 30 days based on the Payment Schedule. If you had a split Payment Term (such as 50% due in 30 days and the other 50% due in 60 days), you would enter this definition as two lines in the Payment Schedule region.

AR Payment Terms Setup

For a Payment Term with a Discount such as 2% 10 NET 30, note that the initial information on the Payment Terms form is identical to the 30 NET Payment Term. The difference is found after selecting the Discounts button at the bottom of the form (see next page).

AR Payment Terms Setup

The Discounts information related to this Payment Term is entered on this form.

AR Payment Terms Setup

This is an example of a PROXIMA term. The cutoff day is the 25 th, invoices received before the 25th are due the 10th of the following month.

AR Payment Terms Setup

Invoices can also be designated as due on a set day of the month i.e. 15th

AR Payment Terms Setup

Using the Cutoff Day option, a payment term could be due the last day of month.

AR Payment Terms Setup

Payment terms can also be flagged to Allow Discount on Partial Payments