Terms is a percentage reduction of the total amount of receivable that is granted to a customer by a vendor for having mad an earlier payment.

List of terms types

The list of terms types is available from the level of the menu Configuration → Finances → Types of Terms It is composed of the following elements

Types of Terms window

• Name
• Active – parameter conditioning whether it is possible to use terms in the system

Items window – presents information regarding selected terms

• [%] – percentage value of granted terms
• Number of Days – period in which the terms is valid, counted from the date of document issue

Defining types of terms

In order to define terms types, it is necessary to select the button [Add], which is placed in the Types group of buttons and, next, insert a unique terms name. The parameter Active is checked by default, with a possibility to change it at any moment.

To define a terms type item, it is necessary to click on the button [Add], which is placed in the Terms group of buttons and, next, define the percentage value of granted terms and its period. In the system, it is possible to add one than more terms type with the same items.

[Alert] A terms type which has been already used in the system, cannot be deleted. [/alert]

[Alert] Modification of a terms type will not change terms values in payments for which it has been already used. [/alert]

Assigning terms to a document payment

Methods of assigning terms to a document payment

• selecting terms type defined in the configuration in the column Terms, in the tab Amounts of a document
• adding new terms type in the tab Terms of a document payment

Selecting terms type in the tab Terms of a document

To assign terms to a payment, from the level of document details it is necessary to open the tab Amounts and then, in the column Terms, select an appropriate terms type.

Adding terms from the level of the tab Terms of a document payment

To add terms, from the level of a document payment is necessary to open the tab Terms and them, from the Terms group of buttons, select the [Add] button. The following fields must be filled in for an item:

• Terms [%] – percentage value of terms (number from the 0-100 range)
• Number of Days – number of days within which payment must be made for terms to be granted. The number of days is counted from the date of issue. After selecting the terms expiration date, the number of days is completed automatically.
• Terms Expiration Date – the date by which payment must be made to be able to grant terms. This date cannot be later than the due date. After specifying the number of days, terms expiration date is completed automatically.
• Terms Base – payment amount calculated on the basis of document items determined as subject to terms. Detailed description of including/non including an item in terms can be found in article Excluding items from terms.
• Value Not Subject To Terms – difference between payment amount and terms base
• Terms Value – value of granted terms. This is a product of terms percentage value and payment value.
• Amount to Be Paid – remaining amount after the payment is corrected by the terms value.
• Currency – symbol of terms transaction currency