Defining Multiple Payment Terms

Multiple payment terms are used to create multiple due dates for a single invoice. A hierarchy of discount dates and percentages is optional.

Discount Logic: Discounts are only offered if a payment is made before the first obligation date. Payments must be made on or before a discount date for a discount to be granted. The discount amount is calculated by multiplying the discount percentage by the total open obligation amount. If the payment amount is less than the amount due, the remainder is due on the obligation date. If the payment amount is enough to cover more than one obligation, the remaining obligations are not due until the originally defined due dates.

This procedure describes the process for defining multiple payment terms with no discounts.

To define multiple payment terms

Access Maintenance (TE01.2), Multiple tab.
Type a term code and description, and define the multiple payment terms for that code.

Use the following guidelines to enter a simple multiple payment with no discounts:

Type

Select Multiple (M).

Total Payments

Type the total number of payments to be scheduled.

First Payment Percent

Type the percent of the invoice amount to be included in the first payment. The remaining amount will be divided equally among subsequent payments.

Due Days or Due Date

Indicate how the first due date should be calculated. For example, 30 days from the invoice date or the 15th day of March.

Increment By

Type the number of days you want between scheduled payments.

Anticipation

Select whether invoices assigned to this net payment terms code are eligible for anticipation discount in the Lawson Accounts Payable application. If Yes, an anticipation discount percent must be defined on Vendor (AP10.1).

Status

Select the status of the net terms code. Valid values are (A) Active or (I) Inactive.
To test a term code using a sample invoice date and amount. Access Preview (TE01.3).