A/P Terms Screen

Sage 300 ERP

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A/P Terms Screen

Open Accounts Payable > A/P Setup > Terms.

Specify whether to include tax amounts in the invoice totals on which discount amounts are calculated:

  • Included. Select this option if you receive a discount on taxes.
  • Excluded. Select this option if you do not receive a discount on taxes or are not charged taxes by your vendors.

Note: You can change the discount amount on individual invoices that use terms codes with discounts.

Select the method your vendor uses to calculate the last day on which you may take a discount for prompt payment. You select from the options for Due Date Type, and type discount percentages.

If you do not receive discounts from your vendors, ignore the discount fields and columns.

You can select:

  • Days from invoice date. Select this option if discount dates are calculated as a particular number of days from the document date.
  • End of next month. Select this option if the discount date is the last day of the next month, regardless of the document date or the number of days in the month.
  • Day of next month. Enter the number of the day of the next month that is the discount date.
  • Days from day of next month. Enter the number of days from a specific day of the next month.

    Example: If the due date is 10 days after the first of the month, enter 10 in the Number of Days field, and 1 in the Day of Month field.

  • Disc date table. Select this option if your vendors use standard discount dates for invoices entered within specified ranges of days.

    Standard due dates are similar to "day of the month due," except they do not restrict discount periods to a single date. For example, you can use standard discount dates to assign invoices to the 15th or 30th of each month.

    You define the standard discount dates used by your vendors with a table that lets you specify a discount date for each of up to four ranges of days on which invoices were issued. You can also assign discount dates that are one or more months later.

Specify the method you use to calculate the due dates for transactions as:

  • Days from invoice date. Select this option if invoices are due by a particular number of days from the document date. Enter the number of days in the Number Of Days column that appears.
  • End of next month. Select this option if invoices are due on the last day of the next month, regardless of the document date or the number of days in the month.
  • Day of next month. Enter the number of the day of the next month that is the due date, and then enter the number (representing the due date) in the Day of Month column.

    Example: If invoices are due on the fifteenth of each month, enter 15.

  • Days from day of next month. Enter the number of days from a specific day of the next month.

    Example: If the due date is 30 days after the first of the month, enter 30 in the Number of Days field, and 1 in the Day of Month field.

  • Due date table. Select this option if your vendor uses standard due dates for invoices with specific ranges of days. Then complete the table that appears.

    Standard due dates are similar to "day of the month due," except they do not specify a single due date. For example, invoices may be due on the 15th or 30th of each month. Standard dates are geared to businesses that enter invoices throughout the month, but issue invoices only on specific days of the month.

    You define standard due dates used by your vendors with a table that specifies due dates for each of up to four ranges of invoice dates. You can also specify due dates that are one or more months later than invoice dates.

Select this option if you do not want to assign the terms code to any vendors.

Example: You might use this option if you decide to delete a terms code, and want to ensure no further vendor accounts are assigned to it.

You can change this option at any time.

Note: If you make a terms code inactive, you can no longer assign it to vendor records. You also cannot save changes to vendor records that use the inactive code, unless you first assign an active terms code to the records.

This field displays the date of the last change made to the terms code.

Select this option to define a terms code that allows installment payments. When you select this option, the terms table expands to add lines for additional payments (otherwise, only a single line is displayed).

When adding a new set of payment terms, enter a code to identify the terms, using up to six characters.

In the field to the right, enter a description (name) for the terms code.

Enter the number that represents the day of the next month on which the discount period expires (used with the Days From Day Of Next Month option).

Enter the number of the day of the next month on which payment is due (used with the Days From Day Of Next Month option).

Enter the amount of the discount, expressed as a percentage of the total due.

Enter the number of days in the discount period, counted from the invoice date (when using the Days From Invoice Date option) or from a specific day of the next month (when using the Days From Day Of Next Month option).

Enter the number of days from the invoice date that is the due date for the invoice (when the due date is calculated using the Days From Invoice Date option) or the number of days from a specified day of the month (when the due date is calculated using the Days From Day Of Next Month option).

If you selected the Multiple Payment Schedule option, enter as many payment lines as you need. Make sure the numbers entered in the Percent Due column are greater than zero, and total exactly 100%.

To add a payment, press the Insert key.

To remove a payment, select a line, and then press Delete.

Note: Accounts Payable automatically numbers payments starting with 1. You can apply payments to individual payment numbers in a multiple payment schedule.

Enter the percentage of the balance that is due for each payment number.

Note: The total of amounts entered in this column must always equal 100.

Specify a due date or discount period that is one or more months later than the invoice date.

Specify the day of the month that is the due date or the end of the discount period.

Enter the last day in the range.

For each standard due date or discount date, define at least one range of days.

Enter the first day in the range.

Overview

Use the A/P Terms screen to:

  • Define the payment terms by which your vendors calculate invoice due dates.
  • Specify the method used to calculate discount periods and discount amounts on invoices from vendors who offer discounts for early payment.

Important! You must add at least one terms code before you can enter Accounts Payable transactions.

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