Payment Terms

This form is used for defining the various payment terms. The standard identification code for payment terms defined here are used in both the sales and purchasing modules.


The payment term specifies the discount rate, discount date, and due date parameters for invoices issued and/or received. During transaction processing, the user is required to specify the applicable payment term for the transaction. It is, therefore, necessary that, even if the term is COD, all possible payment terms are defined before any transaction is recorded.


During sales processing, the user cannot override the payment term and will be required only to specify the code that is applicable. During invoice processing, however, the details of the payment term may be overwritten directly into the transaction.



Explanation of Fields


Payment Term


Required. Capslock.






Discount Rate (%)


Range 0 to 100.


This is the applicable term discount (in percentage rate of the amount due) that will be allowed if the account is settled on or before the discount date.


Discount Days


Must not be less than zero.


The number of days for which the discount rate is valid. The actual term discount is automatically computed if settlement is done on or before the resulting discount date for the invoice.


Net Days


Must not be less than zero. Must not be less than Discount_Days.


Computation of the actual due date will be based on this.


Base Date


This is used to indicate on which date will be computation of the due date be based on. See Table Definitions for the valid entries.