Introduction

You can create payment conditions to be used by your company.

Menu path

Go to Financial/Setup/Master data/Payment condition. Then, click New.

Roles & rights

To maintain payment conditions, function right 357 – Maintain payment conditions is required. Users with the General Manager and Controller roles have this function right.

For more details on what you can do with function rights or levels, go to System/Setup/Security/Function rights, select the required module, and then click on the relevant ID. To find out the functions you can perform with a particular role, go to System/Setup/Security/Roles, type in the description, click Refresh, and then click the required link under the Role column.

Button

Save

Click this to save the new payment condition.

Close

Click this to exit.

Description

Code

Type an alphanumeric code for the payment condition you want to create. This is mandatory.

Description

Type a description of the payment condition you want to create. This is mandatory.

Columns

Days

Type the number of days by which you need to receive a payment (in the case of sales order), make a payment, or to be entitled to a discount. 

Percentage

Type a value to set the payment or discount percentage. This percentage refers to the payment if the Discount check box is not selected. If the Discount check box is selected, this value refers to the discount percentage.

For example, if you type “30” at Days and “10” at Percentage, it means you have to pay 10% of the amount owing by 30 days. If this is a discount, it means if you pay within 30 days, you will get a 10% discount.

Payment method

Select the type of payment method. You can choose from On credit, Cash, Cheque, Letter of credit, Collection, or Factoring.

Discount

Select this check box to set the line as a discount line. Type the percentage of the discount in the Percentage box under the Percentage column.

For example, if you want to give a 10% discount if 50% of the payment is made within 30 days, you need to set the following payment terms:

Line 1

Days = 30

Percentage = 50

Discount check box = Clear

Line 2

Days = 30

Percentage = 10

Discount check box = Selected

Line 3

Days = 60

Percentage = 50

Discount check box = Clear

This will give you a total of 100% payment within 60 days with a 10% discount if 50% of the payment is made within the first 30 days.

Delete

Click the icon to clear the information from the respective lines.

Related document

·         Displaying Payment Conditions