Setting up payment terms

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  1. Choose Setup > Firm Information > Payment Terms.
  2. In the Identification section, enter a unique ID (up to 11 alphanumeric characters) and a description (up to 30 alphanumeric characters) for the payment term.
  3. Choose the method to use when calculating the discount.
    • Choose Amount to have the application use a fixed discount amount. The application will display the discount amount as a dollar value.
    • Choose Percentage to have the application calculate the discount amount as a percentage of the invoice amount, minus any non-discounted amount. The application will display the discount amount as a percentage.
  4. In the Discount Date section, choose the day on which to base the discount date calculation.
    • Choose Days based to have the application calculate the discount date based on a specific number of days after the payable or receivable date, and then enter that number in the associated field.
    • Choose End-of-Month (EOM) based to have the application calculate the discount date based on a specific number of days from the end of the month. If you choose this option, select the month on which to base the calculation and the number of days from that month end.

      EOM represents the last day of the current month; EOM+1 represents the last day of next month; EOM+2 represents the last day of the month after next; and so forth.

      When specifying the number of days from the end of month, a positive number indicates the number of days after the last day of the month, and a negative number indicates the number of days before the last day of the month.

      For a transaction with a payable or receivable date of January 10:

      • If you select EOM and 15, the discount will expire on February 15.
      • If you select EOM and 0 (or blank), the discount will expire on January 31.
      • If you select EOM+3 and -15, the discount will expire on April 15.
  5. In the Due Date section, choose the day on which to base the due date calculation.
    • Click the Days based option to calculate the due date based on a specific number of days after the payable or receivable date, and then enter that number in the Number of days from transaction date field.
    • Click the End-of-Month (EOM) based option to calculate the due date based on a specific number of days from the end of the month. If you choose this option, select the month to use for the calculation, specify the number of days from that month end, and specify a Cutoff day (after which the due date for payables or receivables will be moved to the following month).

      EOM represents the last day of the current month; EOM+1 represents the last day of next month; EOM+2 represents the last day of the month after next; and so forth.

      When specifying the number of days from the end of month, enter a positive number for the number of days after the month end; enter a negative number for the number of days before month end.

      For a transaction with a payable or receivable date of January 10:

      • EOM and 15: The due date is February 15.
      • EOM and 0 (or blank): The due date is January 31.
      • EOM+3 and -15: The due date is April 15.

      For a payment term with the following due date settings: EOM, 10, and 20:

      • If the payable or receivable date is March 9, it is before the cutoff date, so the due date is April 10.
      • If the payable or receivable date is March 20, it is the same as the cutoff day, so due date is April 10.
      • If the payable or receivable date is March 21, it is after the cutoff day, so the due date moves to the next month (May 10).
  6. Click Enter to save the payment term.

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