Vendor Invoice Center Entry - Invoice Detail - Terms overview
The Terms view allows you to override the default terms established in Vendor Setup.
Terms only apply to invoices, miscellaneous credits, and debit memos and are defined in SA Table Code Value Setup. Vendors often offer terms to induce a steady cash flow by providing an incentive for their customers to pay within a certain discount period.
For example, 2%10 n30 offers a 2% discount if the invoice is paid within ten days from the invoice date. If the discount period lapses, the entire invoice is due within 30 days or service charges may be applied.
To add new terms, click and complete the Terms - Detail window.
There can be up to three different terms involved in a transaction:
- Vendor Setup default terms
- New invoice terms entered in Vendor Invoice Center Entry
- Purchase order terms
When there is a difference between these three terms, a window is displayed in PO Header Entry when you click . This window shows the terms that were entered on the invoice, the terms from the purchase order being matched, and the default Vendor Setup terms. Use the drop-down box to select which terms should apply to this invoice. The Terms view is updated to reflect the terms you select.
Split Payment
From the Terms window, you can access the Split Payment window to define or override the split payments for the invoice and generate the schedule payment records.
The Split Terms function allows you to split one scheduled payment into as many as 999 new scheduled payments. Each new scheduled payment reflects an equal portion of the original payment amount and original discount amount, with new due dates and discount dates. The original scheduled payment must be split entirely, therefore, the new scheduled payments must total the original payment and discount amounts.
Because the new payments total the original payment and discount amounts, there is no effect on General Ledger and a journal is not opened. You cannot split payments while you are in the process of adding, changing, or deleting a scheduled payment record. You must update or cancel your work on the Terms window before you can access the Split Terms function.
Splitting scheduled payments allows you to correct mistakes you may have made during Vendor Invoice Center Entry. It also allows you to apply new terms to a vendor by splitting a number of payments across several days, weeks, or months. It also allows you to split a disputed portion of an invoice into a new scheduled payment.
The invoice number of the original scheduled payment does not change; however, the sequence number of the scheduled payment being split becomes inactive, and a new sequence number is assigned to each new scheduled payment. Any new scheduled payments created retain the original payment's post date, which is used as the cutoff date on the Vendor Trial Balance Report.
You can make changes to any number of the payments. The changes you make are reflected in the proof amount and proof discount fields.
To cancel the work you have done on the Split Terms window, click . To update the scheduled payments record and return to the Terms view, click .