Creating prox terms

You can create prox terms in either Payables or Receivables setup.
  1. Select Financials > Payables > Payables Setup > Terms Codes > Payment Terms.
    Or select Financials > Receivables > Setup > Payment Terms > Payment Terms.
  2. Click Create.
  3. Specify the Payment Terms code and Description.
  4. In the Terms Type field, select Prox.
  5. On the Prox tab, specify this information:
    Invoice Cutoff Day
    Specify the cutoff day. This is used to determine the month in which an invoice comes due. Invoice dates that are less than or equal to this day have a net due date that is equal to the prox day in the following month. Any invoice date that falls after the cutoff day has a net due date of two months later than the prox day.
    Prox Day
    Specify the day of the month to calculate the discount date and due date. If you specify a Net Due Date or Net Due Days, then this field is used to calculate the discount date.
    Discount Percent
    Specify the discount percent for this prox terms code. If you specify the Net Due Date or Net Due Days fields, then this field is required.
  6. In the Net Due section, specify this information:
    Date
    Specify a net due date. This field overrides the Prox Day for due date calculations. If this field is defined, then you must also specify a Discount Percent.
    End Of Month
    Select this check box for a due date that is the end of the month.
    Months Forward
    For the due date to fall in a different month than the invoice date, specify the number of months in the future.
    Days
    This is Net Due Days. If you define Percent, then specify up to three days after the invoice date that a discount can be taken on a payment.
    From
    Select if this field is for Last Discount Date Calculated or for Invoice Date.
  7. In the Discount Due section, specify an Additional Days or Additional Months to add to the calculated discount date.
  8. Click Save.
  9. Optionally, you can test a term code using a sample invoice date and amount on the Preview tab.