Payment Terms (Vendor Defaults)
How Do I...
To set up default (standard) payment terms for your vendors and default
purchase and discount G/L accounts, select the Payment
Terms tab in the Vendor Defaults
window.
Standard Terms
If the Use Standard Terms check box is selected for a vendor record
in the Maintain Vendors window, that vendor uses this default set of terms.
Below are the fields that define standard terms:
- C.O.D, Prepaid,
Due in number of days, Due on day of next month, Due at end of month:
Select one of these to tell you when you need to
make your payments.
- Net Due in ...
Days/Due on the ...: Enter the number of days past the invoice
date before the invoice becomes due. If you chose the Due
on day of next month option, enter the day of the month.
- Discount in ...
Days: If you chose the Due in number of days option, enter the number of days past the invoice
date beyond which you will not be allowed a discount by the vendor.
- Discount %: If
payment is made within the Discount Days range, enter the percent of the
total invoice amount that you will be allowed as a discount. Enter fractions
as decimals; for example, two-and-one-half percent should be entered as
2.5.
- Credit Limit:
Enter the total amount of credit you are allowed by the vendor.
G/L Link Accounts
These defaults are used to link purchase and discount G/L accounts to your vendors. You can change the accounts for individual vendors, if necessary.
- G/L Expense Account:
Enter the ID of the liability or expense account you usually
use for purchases. You can change the account entered at the vendor
level (Maintain Vendors) or when entering purchases (Purchases/Receive
Inventory or Purchase Orders).
- Discount G/L
Account: Enter the ID of the account you want to use for early-payment
discounts you take.
To display a list of existing accounts, type ?
in the G/L Account ID field, or
select the Lookup button. To add a new account, type +
or double-click the field, which displays the Maintain Chart of Accounts
window.
What do you want to do next?