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Credit Terms

Form ID: (CS206500)

You can use this form to define multiple types of credit terms that are commonly used by vendors in their relations with your company and by your company in its relations with customers. Credit terms include the installment option (one payment or multiple installments), the payment schedule, and the terms for a cash discount (for only the single installment option). Also, credit terms can be used as a schedule for overdue charges.

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Back to TopTerms Area

This area contains multiple sections with various information about the credit terms.

General Settings Section

You use the elements in this area to define a new set of credit terms and its settings, or to select an existing set of terms and view its settings.

Element Description
Terms ID The unique identifier for these credit terms. The alphanumeric string may contain up to 10 characters.
Description A detailed description of the credit terms. This alphanumeric string may contain up to 30 characters.
Installment Type The type of installment, which can be one of the following options:
  • Single: If you select this option, other elements in this section become unavailable. You should also select the due date and other options for the single payment.
  • Multiple: If you select this option, payment is due in multiple installments. You should also specify the method, frequency, and schedule of the installments.
Visible To The target audience for which the terms are visible, which can be one of the following:
  • All: The terms can be assigned to both vendors and customers.
  • Vendors: The terms can be assigned to vendors only.
  • Customers: The terms can be assigned to customers only.
  • Disabled: The terms are removed from the selection lists for both vendors and customers.

Due Day Settings Section

Element Description
Due Date Type The method of due date calculation. The following options are available:
  • Fixed Number of Days: The payment is due a fixed number of days after a sale or purchase. You should specify the number of days as Due Day 1.
  • Day of Next Month: The payment is due on a particular day of the next month; you should also specify the day of the month as Due Day 1.
  • End of Month: The payment is due at the end of the current month.
  • End of Next Month: The payment is due at the end of the next month.
  • Day of the Month: The payment is due on a particular day of the current month. You should also specify the day of the month as Due Day 1.
  • Fixed Number of Days Starting Next Month: The payment is due a fixed number of days starting the next month after a sale or purchase. You should specify the number of days as Due Day 1.
  • Fixed Number of Days Plus Day of Next Month: The payment is due on a fixed day of the month after a date that is calculated by adding a fixed number of days to the date of the sale or purchase. When this option is selected, the Due Day 1 and Due Day 2 boxes become available. In the Due Day 1 box, you specify the number of days to be added to the invoice date to get the intermediate date to be used in the calculation. In the Due Day 2 box, you specify the day in the month after the month of the intermediate date to be used as the due date.
    • If this option is selected, the following discount types can be selected in the Discount Type box in the Cash Discount Setting section of this form:
    • Fixed Number of Days
    • Day of Next Month
    • End of Month
    • Day of the Month
  • 10th, 20th, or Last Day of Next Month: The due date of the document is determined according to the ten-day range of the month of the document creation (the first ten-day range, the second ten-day range, or the third ten-day range of the month) as follows:
    • If the document creation date is in the range of the 1st to 10th day of the month, then the due date is the 10th day of the next month.
    • If the document creation date is in the range of the 11th to 20th day of the month, then the due date is the 20th day of the next month.
    • If the document creation date is in the range of the 21st day of the month to the end of the month, then the due date is the last day of the next month.
  • Custom: With this option, you specify two due days that could be used; which due day is to be used depends on the time interval set for the document’s date. For example, you may specify one due day for documents issued in the first part of the month, and the second due day for documents issued in the second part of the month. You use the remaining elements in the Due Date settings section to set the due days and their respective date ranges.
Due Day 1 The first due day, which is used with certain Due Date Type options. Specify a number as follows, based on the selected option in the Due Date Type box:
  • If the Fixed Number of Days option is selected, the number of days
  • If the Day of Next Month or Day of the Month option is selected, the day of the month
  • If the Fixed Number of Days Plus Day of Next Month option is selected, the number of days to be added to the invoice date
  • If the Custom option is selected, the first due day
Day Range 1 The start day and the end day of the date range for documents due on the first due day; this element is used with the Custom option only.
The value for the start date is 1 and is read-only to ensure that the beginning of the month is covered.
The value that you enter for the end date must meet all of the following conditions:
  • It must be less than 31
  • It must be later than or the same as the day specified in the start date box
If at least one of these conditions is not met, the system displays an error message.
Due Day 2 The second due day; this element is used with the Fixed Number of Days Plus Day of Next Month and Custom options.
Day Range 2 Read-only. The start day and the end day of the date range for documents due on the second due day; this element is used with the Custom option only.
This value is calculated by the system and is one day later than the end day in the Day Range 1 box.
The system inserts 31 in this box to ensure that the end of the month is covered. The day in this box is always later than or the same as the day specified in the start day box.

Cash Discount Settings Section

In this section, you provide the details of the cash discount included with this set of credit terms. You can specify a cash discount only if the Single installment type is selected in the Installments Settings section.

Element Description
Discount Type The method of calculating the cash discount period, which can be one of the following options:
  • Fixed Number of Days: The discount is available a set number of days after the document date. In the Discount Day box, you should also specify the number of days.
  • Day of Next Month: The discount is available until a particular day in the next month (that is, the month after the document date). In the Discount Day box, you should specify the day of the next month.
  • End of Month: The discount is available through the end of the month (that is, the month of the document date).
  • End of Next Month: The discount is available through the end of the next month (that is, the month after the document date).
  • Day of the Month: The discount is available until the particular day of the month when the document was issued. In the Discount Day box, you should specify the day of the month.
  • Fixed Number of Days Starting Next Month: The discount is available a set number of days starting the next month (that is, the month after the document date). In the Discount Day box, you should specify the number of days.
Discount Day The number of days or the particular day of the month, depending on the Discount Type; this box is unavailable for some options.
Discount % The percent of the discount.

Sales Order Prepayment Settings Section

In this section, you specify the percent of the total amount of a sales order, which is specified in the Order Total box of the Summary area of the Sales Orders (SO301000) form, that the customer must pay as a prepayment before the sales order can be processed. The section appears only when the All or Customers option is selected in the Visible To box of the General Settings section of the current form.

The prepayment percent functionality is available only if one of the following conditions is met for the order type of the sales order on the Template tab of the Order Types (SO201000) form:

  • The Sales Order automation behavior is selected.
  • The following settings are specified: the RMA Order automation behavior, the Issue default operation, and the Invoice or Debit Memo AR document type
Element Description
Prepayment Required A check box that indicates that for a sales order for a customer with the currently selected credit terms, a prepayment is required before the sales order can be processed.
The check box is available when the Single option is selected in the Installment Type box in the Installment Settings section of the current form.
Prepayment Percent The prepayment percent—that is, the percent of the total amount of a sales order that the customer has to pay before the user can proceed to shipping the ordered items and preparing an invoice for the sales order.

Installments Settings Section

By using these elements, you can define how documents should be paid: in a single payment or in multiple installments. If the amount is due in multiple installments, you can also specify a percentage and a due date for each installment; the due date for the first installment is specified in the Due Day Settings section. Discounts are not available for multiple-installment credit terms.

Element Description
Number of Installments
The specific number of installments.
This box appears on the form if Multiple is selected in the Installment Type box. The box is available if Installment Method is set to Equal Parts or Tax in First Installment. The box is unavailable if Installment Method is set to Split by Percent in Table.
Installment Frequency
The frequency of installments.
This box appears on the form if Multiple is selected in the Installment Type box. The box is available if Installment Method is set to Equal Parts or Tax in First Installment.
This box is not shown if Installment Method is set to Split by Percent in Table. The following options are available:
  • Weekly: The second installment will be a week after the first one, and so on.
  • Monthly: The second installment will be a month after the first one, and so on.
  • Semi-Monthly: The second installment will be a half of a month after the first one, and so on.
Installment Method The method by which the amounts of installments are calculated. Select one of the following options:
  • Equal Parts: The document total amount (with all the applicable taxes added) is divided into equal parts. The schedule of payments is defined by the due date, installment frequency, and number of installments specified.
  • Tax in the First Installment: The amount of the document (its total before taxes) is divided into equal parts, and the tax amount is added to the first installment. The schedule of payments is defined by the installment frequency and number of installments specified.
  • Split by Percent in Table: The installment amounts are calculated according to the percentages specified for each installment in the Installments Schedule table below this section.

Installments Schedule Table

Column Description
Days The number of days from the due date on which a particular installment is due. You must use an integer between 0 (due date) and 31.
Percent The percent of a document total. As you add a new installment, the percent is automatically adjusted to make all installments total 100 percent.

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