Payment terms dating

Payment terms dating

Our online business community members came up with the following invoicing challenges: Sending an invoice is only part of the process of getting paid.

Some of your customers will pay on time and without reminders, but others may need to be prompted.

Use net payment terms to specify the due date of the transaction by adding some number of days to the invoice date of the transaction.

Assume that you specify net 30 days to pay and you enter a transaction with an invoice date of June 14. In addition to specifying the net days to pay (or due date), you can specify the discount percent and the discount days.

The system uses the information for the payment term code to calculate the values for the due date, discount available, and discount due date on the invoice and voucher entry forms.

Unlike advanced payment terms, you do not set up due date rules for standard payment terms.

The system uses the last day of the month regardless of the number of days in the month.

In addition to specifying the proximate month and day, you can specify the discount percent and the discount days.

Having a process that helps streamline invoicing can drastically reduce the amount of time you spend collecting your hard-earned money.

Use fixed payment terms when you want to specify a due date instead of having the system calculate the due date.

For example, if you want all transactions due at the end of the year regardless of when they were entered, enter a due date of December 31, 2006.

The system multiplies the gross amount by the discount percent to calculate the discount available.

It then adds the discount days to the invoice date to determine the discount due date.

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The customer has until June 24 to remit their payment to receive a 1 percent discount; otherwise, the payment is due July 14.

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