Terms discounts

In addition to line and whole order discounts, you can also offer terms discounts to your customers. Terms refers to:

• The method of payment that you accept
• The length of time before an invoice is due
• Any cash discount you offer to your customer as an incentive to pay their invoice by a designated date

For example, if the terms are 2n30, the customer receives a 2% discount if they pay the net amount due within 30 days. Each customer record carries a default terms code that describes the basics for discount, discount date calculation, and due date calculation. If the discount terms are line-based, you can change them to order-based. You cannot change order-based terms to line-based terms, unless there are no line items on the order.

Discounts can be exempt. When you enter a return order for an invoice that had a terms discount amount on the order, the discount is adjusted, based on the amount of the correction. If Allow Credit Discounts is selected in SA Administrator Options-Customers-Cash Receipts, the terms discount on the original invoice is reduced, depending on the terms of the customer.

Terms discounts are set up in SA Table Code Value Setup-Terms and assigned to your customers and ship tos in Customer Setup and Customer Ship To Setup.

Terms can be calculated at the sales order level or at the line level, based on the Override setting in SA Table Code Setup-Terms. Also, if the Allow Override of Invoice Terms in SA Operator Setup is selected, the Terms field can be changed on an order. If the Allow Override of Invoice Terms option in SA Operator Setup is not selected, or the terms discount is order-based, and you change the Terms in Sales Order Entry-Customer Order Settings, the message Terms Cannot Be Changed From Order to Line Based (5943), but you are allowed to continue.