Payment Terms (tcmcs0113s000)

Use this session to maintain payment terms.

The Due Date Calculation Method and the Due Date Calculation Priority fields are only relevant if the value of the Payment Period field is Days. If it is Months, these fields are not available.

Payment schedules

On the appropriate menu, you can click Payment Schedules to display the payment schedule linked to the payment terms.

If no payment schedule is linked to the payment terms, the command is not available.

To link a payment schedule to the payment terms, in the Payment Schedule Header field, zoom to the Payment Schedule Headers (tcmcs2120m000) session. You can select a payment schedule or you can click New to define a new payment schedule.

 

Terms of Payment
Agreements about the way in which invoices are paid.

The payment terms include:

  • The period within which invoices must be paid.
  • The discount granted if an invoice is paid within a given period

The payment terms allow you to calculate:

  • The date on which the payment is due
  • The date on which the discount periods expire
  • The discount amount
Payment Period
The number of days or months that LN adds to the invoice document date before or after calculating the due date to obtain the actual due date.

Related topics

Payment Period
The unit of the payment period.

Allowed values

You cannot select Fiscal Periods.

If you select Months, LN sets the Due Date Calculation field to End of Month and the Priority for Due Date Calc. field to Not Applicable. You cannot change these fields.

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Period in Days
The number of days after the invoice date, during which the first discount percentage can be subtracted from the invoice amount.
Period in Days
The number of days after the invoice date, during which the second discount percentage can be subtracted from the invoice amount.

Allowed values

The value must be higher than that of the first discount period, because all discount periods are calculated starting at the invoice date.

Period in Days
The number of days after the invoice date, during which the third discount percentage can be subtracted from the invoice amount.

Allowed values

The value must be higher than that of the second discount period, because all discount periods are calculated starting at the invoice date.

Percentage
The percentage of the invoice amount that can be subtracted on payment within the first discount period.

Allowed values

Zero or higher.

Percentage
The percentage of the invoice amount that can be subtracted on payment within the second discount period.

Allowed values

Each discount percentage must be lower than the preceding one.

Percentage
Percentage of the invoice amount that can be subtracted on payment within the third discount period.

Allowed values

Each discount percentage must be lower than the preceding one.

Day
A fixed day of the month, on which payments are due. If payment days are specified, the calculated due date is changed into the next fixed payment day.

Allowed values

1 to 31

Note

You can specify up to three fixed payment days. If you specify more than one payment day, the first day must have the lowest value, the second day the next value, and so on.

If you do not enter a value in the preceding Day field, the field must be zero.

For months with less than 31 days, payment day 31 in effect is the last date of the month.

Due Date Calculation Method
The way in which the due date is calculated.

Related topics

Due Date Calculation Priority
Indicates how the due date is calculated if the Due Date Calculation field is End of Month.
Discount Date Calculation
The way the discount date is calculated.
Discount Date Calculation
Indicates how the discount date is calculated if the Discount Date Calculation field is End of Month.
Grace Days for Due Date
The number of days a payment can be overdue without the customer receiving a reminder.

If the Due Date Calculation field is End of Month, you can specify a fence. Otherwise, LN sets the Fence for Due Date (days) field to zero.

Related topics

Grace Days for Discount Date
The number of days a payment can be overdue without the customer losing their entitlement to a discount.

If the Discount Date Calculation field is End of Month, you can specify a fence. Otherwise, LN sets the Fence for Discount Date (days) field to zero.

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Percentage
The maximum percentage by which the customer can exceed the discount stated in the payment terms.

LN displays a warning message if a customer subtracts a larger discount from the payment than is stated in the payment terms, and one or both of the following conditions are true:

  • The difference between the allowed discount and the actual discount is less than the amount in the Tolerance for Disc. Amount field.
  • The difference between the allowed discount and the actual discount in percentages is less than the percentage in the Tolerance for Disc. Percentage field.
Amount
The maximum amount by which the customer can exceed the discount stated in the payment terms. The amount is expressed in the reference currency.

When you enter the receipt of the invoice amount, LN displays a warning message if a customer subtracts a larger discount from the payment and one or both of the following conditions are true:

  • The difference between the allowed discount amount and the actual discount amount is more than the amount in the Tolerance for Disc. Amount field.
  • The difference between the allowed discount and the actual discount in percentages is more than the percentage in the Tolerance for Disc. Percentage field.
Days
For the Tolerance for Discount, this field contains the maximum number of days by which the customer can exceed the discount date.

If a customer exceeds the discount period by more days than stated here, LN displays a warning message.

Days
For the Tolerance for Due Date, this field contains the maximum number of days by which the due date can be shifted backwards if the calculated due date is a non-working day (weekend or holiday). If the first available working day lies back further than the number of days specified for the tolerance, the first available working day after the calculated due date will be the actual due date.

Example

Holiday period1 - 31 August
Last working day before31 July
First working day after5 September
Tolerance5 days

 

If the calculated due date is:

  • 3 August, LN shifts the actual due date back to 31 July, because the difference between the due date and the previous available working day (3 days) is less than the tolerance.

  • 8 August, LN shifts the actual due date forward to 5 September, because the difference between the due date and the previous available working day (8) exceeds the tolerance.

Discount Including Tax
If this check box is selected, the discount is calculated over the full invoice amount including tax. This is standard in, for example, Germany and South Africa.

If this check box is cleared, the discount is calculated over the invoice amount after subtracting the tax amount. This is standard in the Netherlands and the U.K.

Use Payment Days for Discount Calculation
If this check box is selected, and at least one payment day has been specified, the calculated last day of each discount period is moved to the next payment day.

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Tax After Discount
If this check box is selected, tax is calculated over the invoice amount minus the applicable discount. This is usually done in, for example, Great Britain.

If this check box is cleared, tax is calculated over the invoice amount before subtracting the applicable discount. This is the accepted procedure in most other countries.

Terms of Payment Text
If this check box is selected, a text is linked tot he payment terms.

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Payment Schedules
Starts the Payment Schedules (tcmcs2620m000) session, which displays the payment schedule linked to the payment terms.

If no payment schedule is linked to the payment terms, the command is not available.

To link a payment schedule to the payment terms, in the Payment Schedule Header field, zoom to the Payment Schedule Headers (tcmcs2120m000) session. You can select a payment schedule or you can click New to define a new payment schedule.