Why:
A payment terms code is registered on every invoice and enables the system to calculate the due date for the invoice to be paid. In the Customer File it is possible to allocate a default payment terms code to each customer.
Where:
From the Control Master File view, select Payment Terms. This will display the Payment Terms window.
How to Add Edit & Delete Payment Terms Codes:
In the Payment Terms window, new codes can be created and existing codes opened, viewed, amended and deleted.
To create a new code select File > New. This will display a Payment Terms Details window. The date flag is either a ‘1’ to represent the document date or ‘2’ to represent the period date.
For example, if payment code 123 is set up with a ‘Days to Due Date’ of 30 and a date flag of 1, the due date will be calculated as being the document (invoice) date plus 30 days.
The display of the Payment Terms field and the printing of due dates on invoices are controlled by parameters.
The remaining entries apply to flexible payment terms functionality, which is used in some markets and is controlled by parameter FPT 001. A customer may arrange to pay a percentage of an invoice in cash and defer the remainder for an agreed number of days. The dealer may recover his interest charges by uplifting parts and service prices using the uplift percentages specified here (Parts Uplift %, Service Uplift % and Promotion Parts Uplift %).
The credit limit flag determines if the customer credit limit is checked before applying uplift changes.
The cash transaction check box will determine which payment terms are applicable to be included within the Cash Transactions report. Thus it is important to only flag those payment terms records the market deems applicable to this report. It also means that as any payment terms records can be flagged, the report could be used for any type of payment terms (not specifically Cash type values).
Related Topics:
The Cash Transactions Report.
Set Up:
The display of the Payment Terms field and the printing of due dates on invoices is enabled/disabled by Fusion parameters DPT 001.