Using Due Date to Select Transactions for Payment

The due date is the date on which a transaction is due to be paid according to the agreed settlement terms. The due date on a transaction can be entered on the transaction, or it can be calculated from another date on the transaction using the payment terms held in a payment terms code.

The due date may be defined as follows:

  1. If a payment terms code applies to the transaction, the payment terms can be used to calculate the due date. The due date is usually calculated from the transaction date. The payment terms typically default to those assigned to the supplier, but a different terms code can be entered on the transaction itself. See the Using Payment Terms to Calculate Dates section in the Business Unit Administrator Guide / Help.
  2. A due date can be entered manually on the transaction, overriding any calculated due date.
  3. If the Override Ageing/Discount field is set for the journal type, the transaction date is used as the due date. This date overrides both a calculated or manually entered due date. This would typically be used for credit notes.

If a payment profile is used to select the transactions for a payment run, the payment profile run selection criteria determine the accounts selected for payment. The Payment Basis option chosen for the payment profile determines how the outstanding transactions on these accounts are selected for payment. The following payment options use the due date as part of the selection criteria:

  • Due Date - a transaction is selected for payment if the transaction due date is on, or before, the Base Date for Payment entered on the payment run, or payment collection run.
  • Allocation Marker and Due Date - a transaction is selected for payment if it contains a valid numeric allocation marker and the due date is on or before the Base Date for Payment.

Exceptions to the Standard Selection Criteria

The due date on transactions is ignored, and the transaction is always selected for payment if:

  • the allocation marker on the transaction is set to Force.
  • the transaction is eligible for discount in the current payment run and is not eligible in the next payment run, according to the Next Payment Date. See Taking Discounts and Adjusting the Tax.

Transactions with an allocation marker of Withhold are never selected for payment.

If you select the Allocation Marker Only payment basis in the profile, transactions are selected by numeric allocation marker, regardless of the due date.