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Creating and maintaining payment conditions

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System ➔ General ➔ Countries ➔ Payment conditions

Introduction

Payment conditions define how a payment is supposed to be settled, whether a surcharge is imposed for the late payment or a discount is given for an early settlement, and also the period to settle the payment. They are important as payment conditions are reflected in sales and purchase orders, as well as invoices.

Description

The due date for the payment condition can be calculated in various ways. At the Due date calculation type field in the Payment conditions screen, there are nine options available for selection.

The following are the calculation examples for each option:

• Date + payment term
  
  Consider the invoice date as 16 May 2005. In the Details screen, Number of days is set to 10.
      
  Calculation:
  Add 10 days from 16 May 2005.
  16 May 2005 + 10 days -> 26 May 2005.
  
  Therefore, the due date for payment is 26 May 2005.
  

To set the number of days for the Date + payment term calculation type, under the Terms tab, click and the Details screen will be displayed. The number of days can be defined at Number of days.

• Date + payment term -> end of the month -> day of the month
  
  Consider the invoice date as 16 May 2005. In the Details screen, the Number of days is set to 8 while the Days to end of month is set to 10. Days to end of month is an additional field in the Details screen for this due date calculation type.
  
  Calculation:
  Add 8 days from the invoice date.
  16 May 2005 + 8 days -> 24 May 2005
  End of the month -> 31 May 2005
  Add 10 days to the end of the month.
  31 May 2005 + 10 days -> 10 June 2005
  
  Therefore, the due date for payment will be 10 June 2005.
  
  
• Date + payment term -> end of the next month -> day of the month
  
  Consider the invoice date as 16 May 2005. In the Details screen, the Number of days is set to 8 while the Days to next month is set to 10.
  
  Calculation:
  Add 8 days from the invoice date.
  16 May 2005 + 8 days -> 24 May 2005
  End of the next month -> 30 June 2005
  Add 10 days to the result.
  30 June 2005 + 10 days -> 10 July 2005
  
  Therefore, the due date for payment will be 10 July 2005.

• Date + payment term -> x.end of the month -> day of the month
  
  Consider the invoice date as 16 May 2005. In the Details screen, the Number of days to invoice date is set to 10, Number of times end of month is set to 3, and the Period due date is set to 2 days.
  
  Calculation:
  Add 10 days from the invoice date.

16 May 2005 + 10 days -> 26 May 2005

3 times end of the month. 
First time end of the month from 26 May 2005 -> 31 May 2005
Second time end of the month -> 30 June 2005

Third time end of the month -> 31 July 2005

Add 2 days to the result.
31 July 2005 + 2 days -> 2 August 2005

Therefore, the due date for payment will be 2 August 2005.

• Date + payment term (in months)
  
  Consider the invoice date as 16 May 2005. In the Details screen, Months to due date is set to 4.
  
  Calculation:
  Add 4 months from the invoice date.
  16 May 2005 + 4 months -> 16 September 2005
  
  Therefore, the due date for payment will be 16 September 2005.
  
  
• Date -> end of the month + x months
  
  Consider the invoice date as 16 May 2005. In the Details screen, the Months to due date is set to 2.
  
  Calculation:
  End of the month from the invoice date -> 31 May 2005
  
  Add 2 months to the result.

31 May 2005 + 2 months -> 31 July 2005

Therefore, the due date for payment will be 31 July 2005. 

• Date + payment term (no recalculation)
  Consider an invoice which is created on 16 May 2005 and the number of days is set to 10.
  
  Since the invoice is created on 16 May 2005, the Transaction date is 16 May 2005. With a payment condition that is based on the due date calculation type of Date + payment term (no recalculation), no recalculation of payment due date is allowed by manually changing the Invoice date when you print the invoice.
  
  Therefore, the due date will always be 26 May 2005 regardless of manual adjustments to the Invoice date (the date the invoice is printed).
  
  
• Order date + payment term
  Payment due date is calculated based on the number of days from the order date.
  
  
• Order confirmation date + payment term
  Payment due date is calculated based on the number of days from the order confirmation date.

What version are you using?

The information in this document is applicable to product update 407 and higher. If you have versions lower than this, certain features explained here will not be applicable.

How do I create a payment condition?

1. In the main screen, create New. The Payment conditions screen will be displayed.
2. Define the relevant fields.
3. Click Save.
4. Click Close.

Keep in mind: All fields with the “!” icon are mandatory. 

How do I edit an existing payment condition?

1. In the main screen, select the required payment condition and click Open.
2. The Payment conditions screen will be displayed.
3. Define the relevant fields.
4. Click Save.
5. Click Close to return to the main payment conditions screen.

Keep in mind: All fields with the “!” icon are mandatory.

Related documents

• Creating and maintaining payment conditions in invoices
• Creating and maintaining payment conditions for sales orders, service orders, and sales quotations
• Overview of payment conditions