Typically you use the terms maintenance functionality to define payment terms that are the same regardless of the date of the invoice. However, you can also use the Terms Maintenance window 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.
As part of creating a new terms code, you set up variable terms for different times during the month. For example, suppose you want to have different terms apply depending on when a customer makes a purchase. You would set up two periods during the month, from the 1st through the 15th and from the 16th through the 31st, and one of two variable terms would apply. You might have the terms of the first period be that net become due on the 10th day from the end of the month, and the terms of the second period be that the net becomes due on the 25th day from the end of the month. Which would mean that if a customer placed an order on the 4th of the month, the invoice would be due on the 10th day after the end of the month.
To create variable terms codes:
Determine the number of periods you want and the range of days belonging to each period. The periods you define must cover all the numbers in the date range of the 1st through the 31st and they cannot overlap. For example, you would define two periods, one from the 1st through the 15th, and the second from the 16th through the 31st.
Follow the steps in the procedure for Creating or Editing Terms Codes to define a basic set of terms for the period from the 1st through the 31st.
From the Terms Maintenance window, select the Maintenance > Change Period menu option to display the Terms Periods window. When you first create a new terms code, the screen displays only one period of 1-31 and the option "New."
Select New.
At the prompt, in the Period Start and Period End fields, enter the range of days to be assigned to the new period in the format ## - ##. For example, to have the change period start on the third day of the month and end on the 15th, enter 3 in the first field and 15 in the second field. Consider the following when deciding on the date range:
Single digits and spaces are allowed.
The new period can be any range of days up to and including 1 - 31.
If the new period is within a currently defined period or partially overlaps two periods, it is created and the affected periods are shortened accordingly.
If the new period completely overlaps one or more periods, the system displays a warning that a period will be deleted.
Click OK.
The Replicate From window displays, listing the currently existing periods.
Select the period whose terms you want to copy to the new period and click OK.
The Terms Maintenance window displays with terms for the new period in the Period field.
Modify the terms as necessary for the new period. Please note that when you make changes to the displayed terms, the changes are applied only to the period represented by what is displayed.
To create additional periods and variable terms, repeat steps 3 through 6.
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