Split term
Split terms define the net due date and discount date as a specific day of the month, depending on the invoice date. Split terms can divide a month into five segments, each having a unique net due date and discount date. Assume this structure for the split terms code:
| Invoice Date Range | Discount On | Due On | Months Forward |
|---|---|---|---|
| 28 - 7 | 9 | 15 | |
| 8 - 12 | 14 | 20 | |
| 13 - 18 | 19 | End of Month | |
| 19 - 27 | 3 | 10 | 1 |
The entire range of invoiced dates can only include two overlapping months. The program calculates the ending day of the range from the beginning day of the next range.
| Invoice Date | Discount Date | Due Date |
|---|---|---|
| January 2 | January 9 | January 15 |
| January 8 | January 14 | January 20 |
| January 15 | January 19 | January 31 |
| January 22 | February 3 | February 10 |
| January 28 | February 9 | February 15 |
Difference between prox and split terms
You can define specific days of the month as the net due date and optional discount dates with both split and prox terms. Split terms have the added ability to split a month into five segments, each having a unique net due date and discount date.
The key difference is the number of due dates during the month. Use Prox terms to limit the number of due dates to one per month. Use split terms to have more than one net due date each month.