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Object documentationPayment Terms - Setup Window Locate this document in the navigation structure

 

Use this window to define the payment terms that apply to transactions with customers and vendors. The payment terms specified here are proposed automatically when you create a master record. You can change this data for each customer or vendor.

To open the window, choose   Administration   Setup   Business Partners   Payment Terms  .

To remove a record, select the record and choose   Data   Remove  .

Note Note

This topic documents fields and other elements in this window that either are not self-explanatory or require additional information.

End of the note.
Payment Terms - Setup Window Fields
Payment Terms Code

Specify a code for these payment terms.

This code appears in the dropdown list of defined payment terms; therefore, use a code that allows for easy identification.
Due Date Based On

Specify the value date of the invoice on which you want to base the installment due date:

  • Posting Date

  • System Date

  • Document Date
Start From

Specify when to initiate the payment:

Month End - last day of the month.

If you base the due date on the posting date and the invoice posting date is October 10, then the month end is October 31.

Half Month - either the 15th or the last day of the month.

When the base date is earlier than 15, then the 15th is the half month. Otherwise, it is the last day of the month. For 10/13/2008 the due date is 10/15/2008, and for 10/23/2008 the due date is 10/31/2008.

Month Start - first day of the month.

If you base the due date on the posting date and the invoice posting date is October 10, the month start is set to November 1.
    + ... Months + ... Days

    The due date for an installment is based on the date of the order and the values specified in the payment terms. You may set the payment period for the current month or for several months in the future, as well as for a number of days in the last month of the period.
    Tolerance Days

    Specify the number of days to subtract from the calculated due date of the invoice.
    No. of Installments

    Number of installments for the current payment.
    Open Incoming Payment

    When you create an invoice, you can specify the payment data immediately. In this case, a receipt must be created along with the invoice; otherwise, the invoice cannot be added. Set this field if you want the system to display the window for entering the means of payment whenever an invoice is created. The entry in this field determines the default means of payment.

    If the window for entering the means of payment is opened automatically based on this field, the customer must pay the full invoice amount. If you select No, the window opens automatically only when the Invoice with Receipt function is called. In this case, you can manually open the window for the means of payment for a regular invoice.
    Cash Discount Name

    Define a cash discount for your customers or for discounts your vendors give you for advance payments.
    Total Discount %

    Specify the total discount that a customer with this payment term should be given. This percentage is copied to the customer master record when you select this payment term. If necessary, you may change this value. The value is copied from the master record to the sales documents.

    The total discount is calculated from the sum of the prices for all the items sold in a transaction.
    Interest on Receivables %

    Define the annual interest rate to charge for open receivables to a customer with this payment term. This data is for information purposes only.
    Price List

    Specify a price list for each payment term. When you select a payment term, this information is saved in the master record for the respective customer or vendor. You can manually specify a different price list. The price list from the customer/vendor master record is copied to the purchasing or sales document. The prices of the items in the transaction are taken from the price list.

    Recommendation Recommendation

    We recommend that you define the names of the price lists (  Inventory   Price Lists   Price Lists  ) and assign them here to the payment terms. You can define the prices of items in the price lists later.

    End of the recommendation.
    Max. Credit, Commitment Limit

    Use these payment terms to define the maximum credit limit for a customer. The term can apply to pending sales and invoices only (Maximum Credit) or to the balance of the customer account (Commitment Limit). The values you specify here are proposed automatically when you create a customer master record. You may overwrite these value as required.
    Country-Specific Fields: Switzerland
    Cash Discount Name

    Use this field to define cash discounts for your customers or discounts your vendors give you for advance payments.

    More Information

    Installments Window

    Defining Payment Terms

    Calculating the Installments