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Setting Up Payment Terms

Setting Up Payment Terms

Concept

Payment terms enable you to enter invoices more efficiently because the system calculates the due dates and discounts for you. The system uses payment terms to specify:
• Payment due date
• Discount percentages
• Discount due dates

 

You can set up the following types of payment terms:
• Due upon receipt: Use this payment term when you want the due date to be the same as the invoice date.
• Fixed: Use this payment term when you want to specify a due date instead of having the system calculate the due date. For example, you might want all invoices for a specific customer to be due at the end of the year regardless of when the invoices were created. Therefore, you would specify a fixed date of December 31, 2005.
• Net: Use this payment term to specify the due date of the invoice by adding a specific number of days to the invoice date.

• Proximate date: Use this payment term when you want the transaction due date to be on the same date of the month regardless of the invoice date. You specify the number of months to add to the invoice date and the date in that month on which the invoice is due.

• Split: Use this payment term when you want the system to divide the invoice amount evenly into multiple pay items with different due dates. The number of days between the second and subsequent payments is constant.

 

You can specify default payment terms for an individual customer in the customer master record. Then, when you enter an invoice, you can either accept the default or override it with a different payment term.

Procedure

In this task, you will review different payment terms.

Step Action
Navigate to the Payment Terms Revisions program (P0014) on the Payment Terms Revisions menu (G00141).

Click the Payment Terms Revisions menu.

Click the Payment Terms Revisions menu.

Use the Work With Payment Terms form to review a list of existing payment terms.

Step Action
Click in the Pay Terms field.

Enter the desired information into the Pay Terms field. Enter “001“.

Step Action
Click the Find button.

Step Action
Click the 001 option.

Click the Select button.

Use the Revise Payment Terms form to set up payment terms.
Use the Payment Terms field to enter a code that specifies the terms of payment, including the percentage of discount available if the invoice is paid by the discount due date. Use a blank code to indicate the most frequently used payment term.

The system prints this information on customer invoices.

Use the Discount % field to enter the percent of the total invoice or voucher that you will allow a discount if it is paid within the discount period. Enter the discount percent as a decimal, for example, a 2 percent discount is .02.
Use the Discount Days field to enter the number of days after the invoice date that an invoice or voucher must be paid to receive the discount. The system adds the number of days specified to the invoice due date to calculate the discount due date.
Use the Net Days to Pay field to enter the number of days that the system adds to the invoice date to calculate the due date on the invoice or voucher.

Step Action
Click the OK button.

Step Action
Click in the Pay Terms field.

Enter the desired information into the Pay Terms field. Enter “005“.

Step Action
Click the Find button.

Step Action
Click the 005 option.

Click the Select button.

If you use split payment terms, the system uses the value from the Net Days to Pay field to calculate the due date for the first split payment.
Use the Number of Split Payments field to enter the number of equal, consecutive payments into which you want the system to divide the invoice or voucher. For example, if the number of split payments is 3, the system divides the invoice or voucher into three equal payments.

You can use split payments only if the number of days between payments is a constant number, such as 30

Note: For amounts that are not equally divisible, the system uses soft rounding.

Use the Days To Pay Aging field to enter the number of days that the system uses to calculate the due date for each subsequent payment if you use split payments.

For example, if the number of split payments is 4 and the days to pay aging is 30, the system adds thirty to the due date calculated for the first payment to obtain the due date for the second payment. The system adds 30 to the second payment to obtain the due date for the third payment, and so on.

In the JD Edwards EnterpriseOne Accounts Receivable system, use the Due Date field to enter the date that the net payment is due.
Use the Prox Date Month field to enter the number of months that the system adds to the invoice date to calculate the due date. The system uses this field in conjunction with the value specified in the Proximate Day field (PXDD) to calculate the due date.

For example, if the proximate month is 1 and proximate day is 15, the system calculates the due date as the 15th of the next month.

Step Action
Click the OK button.

Step Action
Click the Close button.

You have reviewed different payment terms.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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