Under General ledger
/Maintenance/Terms of payment, the terms of payment are created and maintained that can be used in both the customer and vendor modules.
Create/edit payment terms
A payment term is created by selecting
Add on the ribbon.
If you want to change the setup on an existing payment term, select
Edit on the ribbon.
Description of fields
Below are the fields under payment terms.
Note! The fields that appear depend on the selection in the
Payment method field.
| Field name |
Field Description |
| Payment |
A short code/name for the payment term |
| Name |
A descriptive name for the payment term |
| Standard |
Select this check box if you want this payment term to be the default. That is, if, for example, customers and creditors are created without a payment term being selected, should this payment term be entered automatically on the customer/supplier? |
| Payment method |
The following payment methods can be selected:
Cash = Payments received here and now. See description of this payment method below in separate section.
Days = If 'Days' is selected, the due date is set to today's date plus the number of days entered in the Number of Days field.
Run.Week = If 'Running.Week' is selected, the due date is set to the end date of the current week plus the number of days listed in the Number of Days field.
Run.Month = If 'Run.Month' is selected, the due date is set to the end date of the current month plus the number of days in the Number of Days field.
Prepaid = Selected if payment is prepaid.
Credit card = Payment method Credit card does not currently have an associated function. That is, it is not recommended to use this payment method.
Factoring Account = This method may not be used. |
| Move weekend to Monday |
Version-93: If the due date should not fall on a weekend, check this box. |
| Grace days |
Number of days from the due date on the invoice or reminder before reminders can be sent.
Version-93 It is now possible to retrieve the field "Due date", which refers to grace days, in open items on the debtor, it is possible to edit the field.
It is also possible to retrieve the field in "Invoices" from Layout and other fields, but you cannot edit the field there. |
| Number of days |
Enter the number of days to add to the invoice date to find the due date.
Also read the descriptions for the Payment method field above. |
| End month |
If, for example, a payment term is created with current month + 30 days, it is recommended to select 'Current month' in the Payment method field, but only to enter '28' in the Number of days field and select the End month field, so that the payment term will also work correctly when invoicing on, for example, January 15 and where the payment is due on January 15. February 28. See separate example below. |
| Partial payment |
|
| Financial account |
This field is used for the 'Cash' and 'Prepaid' payment methods. See description of these payment methods below for examples. |
| Counter account |
This field is used in conjunction with the 'Prepaid' payment method. See description of this payment method below for examples. |
| Create two transactions |
This field is used in conjunction with the 'Cash' payment method. See description of this payment method below in separate section. |
| Cash discount % |
If, when using the payment condition, a cash discount amount should also be calculated that can be offset when paying the invoice, enter the percentage here, and in the Cash discount.days field, enter the payment date that will automatically trigger the cash discount.
Read more about handling cash discounts here. |
| End of month Cash discount |
If cash discount days are 30, we recommend entering 28 in the Cash discount days field, and then also checking this box. Read more about handling cash discounts here. |
| Cash discount days |
The description in the Cash discount % field . Read more about handling cash discount here. |
| Cash discount method |
Choose whether the cash discount should be calculated on the net or gross amount, i.e. the invoice amount incl. or excl. VAT. Read more about handling cash discounts here. |
| Refund VAT on cash discount |
Select whether to refund the VAT on the cash discount. Read more about handling cash discounts here. |
Example 1 - Current month + 1 month
If the payment method is to be current month+1 month, then it must be set up as follows to also work in February:
Example 2 - Net 30 days but minus 3% for net 10 days
If the payment method is to be net 30 days and at the same time has a cash discount of 3% when paid within 10 days, then it must be set up as follows:
Example 3 - Net cash
If the Payment Method is net cash, the payment term can be created in 2 ways:
- Select 'days' in the Payment method field and '0' in the Number of days field
- Create it as shown below, but pay attention to the selections in the Financial account and Create two entriesfields .
The Financial account field specifies an account of type 'Bank', and when the payment condition is used on a sales invoice, no entry will be posted on the customer, as the amount is immediately posted as received on this bank account.
If you want an entry to be posted on the customer, but at the same time that this is posted away again in connection with the payment, you must check the Create two entries box.
Note! After posting a cash sale or purchase, the
Cash field is checked under
Costumer/Reports/Invoices or
Vendor/Reports/Invoices.
This shows that no records have been formed on the customer/vendor status account.
Possible error message if Cash is not set up.
Error: Account number not listed PaymentTerms: Cash
Example 4 -F orpaid
Complete the account where you want to post the counterpart to the customer/vendor record.
