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Maintaining Payment Terms
Maintaining Payment Terms
Although payment term definitions are stored on Reference File categories 323 and 347, you may only maintain the definitions through the Payment Terms Maintenance conversation in Accounts Receivable. Payment terms are identified by a two-character code and contain information on discounts, due dates, payment types, and installment payments.
To maintain payment terms, select the Payment Terms Maintenance option from the Accounts Receivable Menu. The function select screen is displayed for you to enter the two-digit payment terms code that you wish to maintain and the transaction code (add, change, delete, inquire). The following page shows a sample of this screen.
WILLIAMS ACCOUNTS RECEIVABLE 11/08/92
DSP01 PAYMENT TERMS MAINTENANCE FUNCTION SELECT
Payment Term BC
Transaction Code A
A - Add
C - Change
D - Delete
I - Inquire
F2=Command F3=Exit F4=Prompt
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Payment Terms Maintenance Function Select Screen
When you press Enter, the detail screen is displayed with the information defined for the payment term (for change, delete, and inquire) or with default values (for add). The detail screen for the payment terms maintenance conversation is shown below.
WILLIAMS ACCOUNTS RECEIVABLE 1/23/93
DSP01 PAYMENT TERMS MAINTENANCE CHANGE
Payment Term BC Description 5 PMTS DUE ON 15TH
Total Number of Installments 5 Default Payment Type CK
Discount Percent .000 Installment Shift 15
Discount Days 0
Due Days 0
After End of Month N
Accumulated Installments 5 100.00 Renumber by: 0
Seq Num Inst Pmt Type Days Percent
10 1 CA 10 40.00
20 2 CK 10 40.00
30 2 CK 10 20.00
40 0 0 .00
50 0 0 .00
60 0 0 .00
F2=Command F3=Exit F4=Prompt F10=Function Select
F18=Renumber F22=End Tran
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Payment Terms Maintenance Detail Screen
As shown in this figure, the payment term (BC) contains definitions for five installments (sequence number 10 will generate one installment and sequence numbers 20 and 30 will each generate two installments). The Installment Shift field on the header portion of the screen is used to specify the day of the month on which each installment will be due.
On each detail line you can create a different installment definition by specifying the following information:
· the number of installments to be generated based on the information on the detail line,
· the payment type for each installment,
· the minimum number of days between the due dates of each installment (the due date is calculated based on the value entered in the Installment Shift field and the value entered in this field),
· the percentage of the total invoice to be paid by all of the installments (this percentage is divided by the number of installments to determine the total for each installment).
Interpreting the Installment Detail Lines
The first detail line in the previous figure creates one installment (number of installments) to be paid by cash (payment type) with a due date at least 10 days after the invoice is created (number of days). The installment from line one will be 40% (percent) of the total invoice.
The second detail line creates two installments to be paid by check with due dates at least 10 days apart. Each installment from line two will be 20% of the total invoice (40% divided by 2 installments = 20% each).
The third detail line also generates two installments to be paid by check with due dates at least 10 days apart; however each installment will be only 10% of the total invoice.
For example, if you created an invoice on January 1, 1999 for $1,000 with the payment terms described above, the following installments would be generated (see below):
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$400
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1/15/99
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Cash
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40% * $1000 = $400
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From the first detail line for the payment term, 40% of the total, due at least 10 days after the invoice date on 15th.
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$200
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2/15/99
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Check
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20% * $1000 = $200
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From the second detail line for the payment term, 20% of the total (40% divided by 2 installments), due at least 10 days after previous installment on 15th.
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$200
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3/15/99
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Check
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20% * $1000 = $200
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From the second detail line for the payment term, 20% of the total (40% divided by 2 installments), due at least 10 days after previous installment on 15th.
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$100
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4/15/99
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Check
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10% * $1000 = $100
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From the third detail line for the payment term, 10% of the total (20% divided by 2 installments), due at least 10 days after previous installment on 15th.
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$100
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5/15/99
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Check
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10% * $1000 = $100
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From the third detail line for the payment term, 10% of the total (20% divided by 2 installments), due at least 10 days after previous installment on 15th.
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Installment Calculation Table
The Invoice and DR/CR Memo Entry - Installment Detail Screen for an invoice generated using the payment terms discussed above is shown here below.
WILLIAMS INVOICE AND DR/CR MEMO ENTRY USD 11/09/92
DSP01 INSTALLMENT DETAIL ENTER
Bill-to Customer ABC00000001 ABC MANUFACTURING Dc Dt 3/09/93
Ship-to Customer ABC00000001 ABC MANUFACTURING Batch
Document IN INV00020 Co/Loc 001 BRU ANDERSEN SOFTWARE - BRUSSELS
Pmt Term BC 5 Payments Due on 15th
Gross Amount 200.00
Ins Installment Amt Open Inst Amt Due Date Pmt Type Bank Code
001 400.00 400.00 1 15 93 CA
002 200.00 200.00 2 15 93 CK
003 200.00 200.00 3 15 93 CK
004 100.00 100.00 4 15 93 CK
005 100.00 100.00 5 16 93 CK
F4=Prompt F13=Cancel Trans F16=Review Header
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Installment Detail Screen
Note: For payment terms with installments, you may not enter values for the following fields on the header portion of the detail screen: Discount Percent, Discount Days, Due Days, and After End of Month. Discounts do not apply to installments. If you are not defining installments for the payment term, the Total Number of Installments Field must be zero.