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 of an already created payment term, select Edit on the ribbon.
Description of fields
The fields under payment terms are described below. Please 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 | Check this box if you want this payment term to be the default. For example, if debtors and creditors are created without selecting a payment term, should this payment term be set 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 “Run.Week” is selected, the due date is set to the end date of the current week plus the number of days in the Number of days field. Due.Month = If “Due.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 = Select if the payment is prepaid. Credit Card = Version-94 The Credit Card payment method is payment received here and now. If you want a counter entry on the Financial account or on the Debit account. See description below. Factoring Account = This method must not be used. |
| Move weekend to Monday | If the due date should not fall on a weekend, check this box. |
| Grace days |
Number of days from the due date on the bill or reminder before reminders can be sent. It is now possible to retrieve the field “Deadline date”, which refers to grace days, into open items on the customer, it is possible to edit the field. It is also possible to retrieve the field into “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 of 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 payment is due on 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, using the payment term, a cash discount amount must also be calculated that can be offset against payment of the invoice, then the percentage is entered here, and in the Cash discount field.days indicate which payment date will trigger the cash discount automatically. 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 to work in February as well:
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 Payment Method is net cash, the payment condition can be created in 2 ways:
- Select “days” in the Payment method field and “0” in the field Number of days
- Create it as shown below, but pay attention to the selections in the Financial account and Create two entriesfields . In the Financial account field, enter an account of type “Bank”, and when the payment condition is used on a sales invoice, an entry will not be posted on the debtor, as the amount is immediately posted as received on this bank account. If you want an entry to be posted on the debtor, but at the same time that this is posted away again in connection with the payment, you must select the Create two entries field.
Note! After posting a cash sale or purchase, the Cash field under Debtor/Reports/Invoices or Vendor/Reports/Invoices is checked.
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 - Prepaid
Complete the account where you want to post the counterpart to the customer/vendor record.
Example 5 - Credit card
Here you can choose to post to Financial account or Debtor account. Only one of them needs to be filled in, however, Financial Account and Create two entries are linked, as shown here with a red frame, and it works in the same way as Payment method Cash.
Debtor is indicated as shown here in yellow frame when you want an open entry on a debtor. In this case on debtor account 1003.
