Use the Payment Terms table to manage due dates and payments. This table lets you assign a code to each set of payment terms. Then you can enter the code in payment terms code fields elsewhere in the program, for example on a customer card. After this, when you post or set up orders, invoices, credit memos, and so on, the program will use the payment terms information indicated by the code.

Payment terms must contain a Due Date Calculation formula that the program uses together with the document date to calculate the due date. In addition to this, a set of payment terms can contain a Discount Date Calculation formula, a Discount % and a Calc. Pmt. Disc. on Cr. Memos allowance. These fields must be filled in if the payment terms contain a possible payment discount.

Once you have assigned payment terms to a customer or vendor, the program will automatically calculate the due date when you create an invoice. If you have set up a payment discount, the program will calculate the payment discount date. When you post the invoice, the program will calculate the discount amount possible at this time.

Customer payment terms can be used to manage the collection process (sending reminders and finance charge memos). Vendor payment terms are used in the Suggest Vendor Payments batch job, found by clicking the Payments button in the Payment Journal window.