Fixed days term
Fixed days terms can establish obligations on certain days of the month or days of the week. There are no discounts allowed with this type of terms code.
Calculation of first due date
The calculation of the first due date depends on several user defined variables.
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The number of days between the invoice and the first obligation is used to calculate the date of the first obligation.
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The days for adjustment, if specified, are also used to calculate the date of the first obligation. Days for adjustment are used when a calculated due date falls between two fixed days of the month.
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The days between payments will adjust multiple obligations to be at least that many days between obligations. If this number is larger than the number of days between the fixed payment days (depending on the size of the adjustment days range), it can cause the application to skip over a fixed payment day.
Example
This example shows the obligation structure of a fixed days terms code. Assume this information about the sample invoice:
| Number of payments | 7 |
| Days between invoice an first due date | 10 |
| Days between payments | 8 |
| Fixed payments days of month | 5 15 25 |
| Fixed payments days for adjustment | 3 |
If the number of obligations is set at 7 and the days of the month are set at 5, 15 and 25, there are 7 obligations created with due dates being the 5th, 15th and the 25th, alternating until all 7 obligations are created.
If the number of days between the invoice and the first obligation when added to the invoice day falls on the 27th of the month and the days for adjustment is equal to 3, the program looks back 3 days to see if there is an earlier date to use as the first obligation.
In this case, the invoice date plus the days between the invoice date and the first due date is equal to 27, and the 25th is within the 3 day adjustment range. From this set of variables, the first obligation date would be the 25th.