Defining Prox Terms

Use prox terms to establish a net due date for all invoices generated during a defined period. The following procedure outlines the process for defining prox terms.

To define prox terms

  1. Access Maintenance (TE01.2), Prox tab.
  2. Type a term code and description, and define the prox terms for that code. Complete the following fields to enter a simple prox term with no special net due options or discounts.
    Type

    Select Prox (P).

    Invoice Cutoff Day

    Type the cutoff day that should be used to determine in which month an invoice should come due. Any invoice date equal to or prior to this day will have a net due date that is equal to the prox day in the following month. Any invoice date that falls after the cutoff day will have a net due date two months out on the prox day.

    Prox Day

    Define the day of the month used to calculate the discount date and due date. If you define a Net Due Date or Days, this field is used to calculate the discount date only.

    Discount Percent

    The discount percent for this prox terms code. If you type a value in the Net Due Date or Days fields, this field is required.

    Net Due Date

    Type a net due day. This field overrides the Prox Day for due date calculations. If defined, you must also define a Discount Percent.

    Net Due Days

    Type a number of days to be added to the invoice date or discount date to calculate the net due date. This field overrides the Prox Day for due date calculations. If defined, you must also define a Discount Percent.

  3. Optional. To test a term code using a sample invoice date and amount. Access Preview (TE01.3).