Payment Terms

Overview

The Payment Terms Type document is used to establish codes that define a vendor's payment terms, including the number of days in which a payment is due and if a discount is available for prompt payment.

Payment Terms Type

Most fields are self explanatory, those requiring additional description are listed below. 

• Payment Terms Percent: The percentage discount to be applied if the payment is made by the discount date.
• Discount Due Number: Reflects either the number of days or the date (day of the month) by which payment must be made to qualify for the discount percentage.
• Discount Due Type Description: Specifies if the Discount Due Number field represents a number of days or the date of the month. 
• Net Due Number: Reflects either the number of days or the date (day of the month) by which net payment is due.
• Net Due Type Description: Specifies if the Net Due Number field represents a number of days or a the date of the month.

Payment Terms Parameters

The following parameters are used in conjunction with the Payment Terms specified on the Payment Request: 

• NUMBER_OF_DAYS_USED_TO_CALCULATE_DEFAULT_PAY_DATE:  This parameter is used to create a Pay Date by adding the value in this parameter to the current date. This date is then compared to the calculated Pay Date and the later of the two is used to populate the Pay Date on the Payment Request. Calculated Pay Date: If the Vendor is set up with Payment Terms, a Pay Date is calculated based on the Payment Terms and Invoice Date less the number of days in parameter NUMBER_OF_DAYS_USED_TO_DECREASE_CALCULATED_PAY_DATE. If Payment Terms are not specified on the Vendor,  the number of days in DEFAULT_PAY_DATE will be added to the Invoice Date.

• NUMBER_OF_DAYS_USED_TO_DECREASE_CALCULATED_PAY_DATE: The number of days subtracted from the calculated payment due date to ensure payment is made on time. This parameter can be used to adjust the payment due date to ensure payments to vendors meet discount requirements or to account for holidays.