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: Two payment dates are calculated when a Payment Request is created: 1) Using the payment terms specified in the Payment Terms Type table, and 2) the number of days specified in this parameter are added to the current date to generate a pay date. The later of these two dates less the number of days in the NUMBER_OF_DAYS_USED_TO_DECREASE_CALCULATED_PAY_DATE parameter is set as the pay date on the Payment Request.
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.