Use the Terms Maintenance functions to create and maintain payment terms for your customer's invoices. In addition, you can do the same for payment terms as established by vendors that you purchase goods and services from. For training purposes, new systems arrive with several standard terms codes already defined, but you need to define the additional terms codes that your company uses.
Terms codes are applied using the Credit Control Parameters screen. For more information, see Defining Payment Terms and Credit Control Parameters.
Use the following procedures to create and edit terms codes:
Creating or Editing Terms Codes
Use the Terms Maintenance screen to create or edit customer and vendor term codes. For a given terms code, you can do either of the following:
Define payment terms that are the same, regardless of the payment date of an invoice.
Define different terms for different periods of time within a month.
You can override credit parameters set in customer maintenance. The parameters on this screen include the first nine parameters on the customer Credit Control Parameters screen and allow you to override the original settings. Use this function, for example, when you want to override the customer's credit controls on an individual order or invoice, well in advance of when the order actually needs to ship.
Typically you use the Terms Maintenance screen to create variable terms codes, that is, payment terms that are the same regardless of the date of the invoice. However, you can also use this screen to create payment terms that have variable dates within the same month. This allows you to create one code and assign it different terms that will apply to an order based on the period in which a product ships out.
You can create a terms code that allows split payments for an order by assigning other previously defined terms codes to certain percentages of the order.
You can create multiple discount dates and percentages for a terms code.
You can create a work-around that the Purchasing and the Credit departments can use to release credit holds on direct purchase orders. First you set up the work-around in Terms Maintenance, then you can use the work-around when purchases are made.
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