Credit Terms Management

OBJECTIVE

The Credit Terms Management option is used to enter a predetermined number of days for the payment of customer invoices and to determine the due date when customer invoices are entered based on the actual date.

The interest rate can be associated with the customer in Customer Management and can be used as the default value in the various invoicing entry screens of the system.

Customer interest rates can be managed automatically or manually based on the status of invoice is entered in the system and the interest rates are using the Credit Validation option.

PREREQUISITE

N/A

Steps

Create credit terms

Enter the required information:

The Configuration icon is used to define entry options for the Code field.

Fields followed by the * character are mandatory fields.

Two settings are available in this screen. Choose only one method, either the method with a Number of Days or with a Day and Number of Months.

Field

Description

Terms Code*

Code for the terms created.

NOTE: The system can assign this number automatically when the transaction is saved if a code is not entered manually. The code may only contain numeric characters.

French Description

French description of the credit terms.

English Description

English description of the credit terms.

Number of Days

Used to enter the number of days to be calculated from the transaction date to determine the due date of the invoice.

NOTE: 1st method: For example, for a term of 30 days, an invoice dated August 13 will be due on September 12.

Day

Date of the day on which the transaction is payable.

NOTE: 2nd method: For example, 15th day, Month 0 for the current month, an invoice dated August 14, the due date is August 15, whereas an invoice dated August 16 is payable on September 15 or the 15th day, Month 1 for the next month, for an invoice dated August 14, the due date is September 15.

Number of Months

Month in which the transaction is payable.

Annual Interest Rate

Annual interest rate applicable to unpaid invoices.

NOTE: This rate is indicated on the account statement.

Field	Description
Terms Code*	Code for the terms created. NOTE: The system can assign this number automatically when the transaction is saved if a code is not entered manually. The code may only contain numeric characters.
French Description	French description of the credit terms.
English Description	English description of the credit terms.
Number of Days	Used to enter the number of days to be calculated from the transaction date to determine the due date of the invoice. NOTE: 1st method: For example, for a term of 30 days, an invoice dated August 13 will be due on September 12.
Day	Date of the day on which the transaction is payable. NOTE: 2nd method: For example, 15th day, Month 0 for the current month, an invoice dated August 14, the due date is August 15, whereas an invoice dated August 16 is payable on September 15 or the 15th day, Month 1 for the next month, for an invoice dated August 14, the due date is September 15.
Number of Months	Month in which the transaction is payable.
Annual Interest Rate	Annual interest rate applicable to unpaid invoices. NOTE: This rate is indicated on the account statement.

Click Save.

Credit Terms Management

OBJECTIVE

PREREQUISITE

Steps

Create credit terms

See also