Set up vendor accounts payable terms

1. Go to File>Vendor>Terms.

   

2. Click New.
3. In the A/P Term box, type a new code or reference number for the Terms, and then press the Tab key.
4. Type a Description.
5. Choose your payment terms option.
   Net Terms

   To choose Net Terms, click once to clear the Prox Terms check box.

   

   The payment interval between the invoice date and the due date is a fixed number of days that you specify in the Net Days box. If payment is not made within that time interval, a finance charge may be applied. You may also specify Discount Days.

   • Net DaysThe number of days after the original invoice date given to pay the net payment in full. After this date, the invoice becomes overdue and incurs finance charges.
   • Discount Days The number of days after the original invoice date that the payer is eligible for a discount, if they complete payment by that date. For example, entering 10 in this field would give the customer 10 days to submit payment and receive a discount. After 10 days, the customer would pay invoice in full. If no discount, leave this field at 1. If there is a 0 discount, then set the Net days to equal the Discount Days.
   • Discount % The discount percentage that will be applied should payment be made in full by the discount days or date terms. If you don't want to offer a discount, type 0.

   Some examples:

   Term	Description	Configuration
   Net 30	Payment is due in full 30 days after the invoice date.	Net Days: 30 Discount Days: 0 Discount Days : 0
   1% 10 Net 30	A 1% discount will be applied if payment is made within 10 days of the invoice date; if not, payment is due in full 30 days after than invoice date.	Net Days: 30 Discount Days: 10 Discount %: 1
   2% 20 Net 60	A 2% discount will be applied if payment is made within 20 days of the invoice date; if not, payment is due in full 60 days after than invoice date.	Net Days: 60 Discount Days: 20 Discount %: 2

   Prox Terms

   To choose Prox Terms, click once to clear the Prox Terms check box, and then once more to select it.

   

   These payment terms let you define the payment due date from the beginning of the following month. The word "Prox" is from the retail industry and means "next of month." Invoices that do not meet the designated "cutoff" date for one month, would be paid in the next month. Typically the cutoff date is set to 25 or 31. The cutoff date for A/R terms is set by the Cutoff Day option on File>Vendor>Master: Setup, General.

   Inform ERP allows you set to Prox days as the number of days following the invoice date. Typically, this is 30, 60, or 90, so payment is due the month following the invoice date, 2 months following, or 3 months following; however, you may also set 14 days for two weeks, or 45 days for a month and a half.

   You can then set the day of the month on which the payment is due, as well as a date by which a discount will be applied. You may also offer a discount percent if the invoice is paid within a certain time period.

   Select

   • Prox Days The number of days that define the prox period: 30, 60, or 90.
   • Day of Month Due The day of the month on which payment is due. If you specify 31 or higher, payment is due on the last day of the month.
   • Disc Day of Month The date by which an invoice must be paid in full to receive a discount.
   • Secondary Day of the Month Due If you have split prox terms, then this is the date by which the second payment is due.
   • Secondary Discount Day of MonthIf you have split prox terms, this is the date by which an invoice must be paid in full to receive a discount.
   • Discount % The discount percentage that will be applied should payment be made in full by the discount days or date terms. If you don't want to offer a discount, type 0.

   Some examples, all assuming a cutoff date of the 31:

   Term	Description	Configuration
   Net 10 Prox	Payment is due in full on the 10th day of the month following the bill month. No discounts are available. Invoice Date: August 5 Payment Due Date: September 10	Prox Days: 30 Day of Month Due: 10 Disc Day of Month: 1 Secondary Day of Month Due: Blank Secondary Discount Day of Month: Blank Discount %: 0
   60 Net 10 Prox	Payment is due in full on the 10th day of the second month following the bill month. No discounts are available. Invoice Date: August 5 Payment Due Date: October 10	Prox Days: 60 Day of Month Due: 10 Disc Day of Month: 1 Secondary Day of Month Due: Blank Secondary Discount Day of Month: Blank Discount %: 0
   5% 10 EOM Prox	A 5% discount will be applied if payment is made on the 10th day of the month following the bill month; if not, then payment is due in full on the last day of the month following the bill month. Invoice date : August 5 Discount awarded if payment made by Sept 10 Payment in full due Sept 30	Prox Days: 30 Day of Month Due: 31 Disc Day of Month: 10 Secondary Day of Month Due: Blank Secondary Discount Day of Month: Blank Discount %: 5
   Net 15 Prox Net 30 Prox	There are two payments due per month: The first payment is due in full on the 15th day of the month following the bill month; the second payment is due on the 30 day. No discounts are available. Invoice Date: August 5 Payment Due Date: September 15 Secondary Due Date: September 30 .	Prox Days: 30 Day of Month Due: 15 Disc Day of Month: 1 Secondary Day of Month Due: 30 Secondary Discount Day of Month: Blank Discount %: 0

6. By default, discount percentages are calculated on the merchandise total. To calculate the discount percentage based on the gross amount of the invoice rather than on the merchandise total, select the Cal Discount on Gross check box.
7. Click Save.

1. Go to File>Vendor>Terms.
2. Click Report.

   

3. On the Field Selection pop-up that appears, you can choose which fields appear. Drag the fields into the Print Order area, and then click OK.
4. On the Print Document pop-up, click View.

1. Go to File>Vendor>Terms.

   

2. In the A/P Term box, click , and then click the terms you want to update.
3. Click Edit.
4. Modify the terms as described above.
5. Click Save.

Warning! Do not delete payment terms that have already been assigned to a vendor. If you do, then you must update the vendor with new terms. All historical information about these terms will be saved.

1. Go to File>Vendor>Terms.
2. In the A/P Term box, click , and then click the terms you want to delete.
3. Click Edit.

   

4. Once the payment terms are in edit mode, click the Delete button.
5. On the confirmation message that appears, click OK.