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Chapter 14 ■ Defining FI Accounts Receivable and Accounts Payable
Account Type: Specify the account type that your payment term applies to,
customer or vendor. It is also possible to set your payment term to both account
types by clicking the checkbox for Customer and Vendor, but it’s better to use one
account type per payment term.
Default for Baseline Date: Select from a number of options to use as the date
that’s applicable to the terms payment. The date you select will be used by the
system to determine permitted cash discount amount or invoice due date.
Setting choices include:
• No Default: You use No default if you do not want the system to default to a
date during document entry. This means during document entry the user has to
manually specify the baseline date that is applicable to the terms of payment.
• Document Date: This is the date on the document or the date you entered
during document entry.
• Posting Date: This is the date a document is posted or the date you specified as
the posting date.
• Entry Date: This is the date the document is entered into the system.
Payment Terms: This setting enables the system to award a cash discount if an
invoice amount is paid within the specified date. For example, an immediate
payment means a 5% discount, within 15 days means a 3% cash discount, and
within 45 days means net due.
Term: This section allows you to specify up to three payment terms. This
includes percentage rate and number of days applicable to your payment terms.
Click the Enter button on the top-left side of the screen to confirm your specifications and save
your terms of payment.
Next, you need to define terms of payment for your vendor using the information in Table 14-1.
Table 14-1. Define Terms of Payment for Vendors
Field Name or Data Type
Values
Payment Terms
V001
Account Type
Vendor
Select
Default to Baseline Date
Posting Date
Select
Payment Terms
Term Percentage No. of days
1. 5% Blank
2. 3% 15
3. 45
220