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Documentation > MAC-PAC Reference Library > Financials > Accounts Receivable > Key Concepts and Procedures > Generating Installments > 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                             

                                                                               

                                                                               

 

           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                                              

                                                                                

 

             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):

 

Installment Amount


Due Date

Payment
Type


Calculation Method


Calculation Explanation

$400

1/15/99

Cash

40% * $1000 = $400

From the first detail line for the payment term, 40% of the total, due at least 10 days after the invoice date on 15th.

$200

2/15/99

Check

20% * $1000 = $200

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.

$200

3/15/99

Check

20% * $1000 = $200

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.

$100

4/15/99

Check

10% * $1000 = $100

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.

$100

5/15/99

Check

10% * $1000 = $100

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.

               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                     

                                                                               

                                                                                                                                                                

                                                                               

 

                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.