Setting Up Billing Terms

  1. Open the Billing Terms form.
  2. Specify this information:
    Terms Code
    Specify a code for the new billing term. You can use any combination of letters or numbers for the code. For example, enter the letter A or the number 30 for a terms code.
    (Code Description)
    Specify a description to help identify the terms code.
    Due Days
    Specify the number of days until an invoice for this customer or vendor becomes due. Use this field to add to the Invoice Date in calculating the Due Date for an invoice.
    Proxy Day
    Specify the day of the month following the invoice date, on which the invoice becomes due. If the Proxy Day is greater than the number of days in the next month, the last day of the next month is used. Leave the Due Days field blank if the Proxy Day is to be used. If you select Advanced Terms, specify either 0-30 or 99 for the proxy day. Using 99 instructs the system to set the due date to the last day of the month in which the calculated date falls.
    Discount Days
    Specify the number of days used to determine when discounts are no longer valid. Discount Days are the number of days from the date of the invoice in which a discount is allowed, providing payment is made within that time period.
    Discount Percent
    Specify the percentage of the sales amount of an invoice that is deducted from the amount owed, if payment is made within the number of Discount Days.
    Advanced Terms
    Select this check box to enable the Proxy Code, Proxy Days, and Due Days fields for Advanced Terms calculation of the date on which payment is due.If this check box is cleared, the Proxy Code field is disabled. The due date calculation does not include advanced terms.
    Proxy Code
    If Advanced Terms is selected, the default value for this field is 0. Optionally, specify the appropriate proxy code:
    • 0: The system does no additional calculation.
    • 1: The system checks to see if the due date is prior to the 25th of the month. If it is not, the date is moved up to the first of the next month.
    • 2: The system sets the due date to the end of the month.
    • 3: The system performs the calculation for proxy code 1, and then, using this result as the starting point, performs the calculation for Prox Code 2.
    If Advanced Terms is cleared, the default value is 99 and you cannot update this field. During the calculation of the due date, the proxy code adjusts the date before the due days are added.
    Pay When Paid
    Select this check box to hold payment to vendors until payment has been received from the customer on a service order. When entering new vendor invoices, if Pay When Paid is selected for the billing terms, then by default, the system puts the invoice on hold. They system then automatically releases invoices to be paid when a customer's full payment for an invoice is received.
  3. Save the record.

An error message is displayed if you attempt to delete a Terms Code currently being used in one of these areas:

  • Vendors
  • Customers
  • Estimates
  • Purchase Orders