Payment Terms screen

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Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

Links to our most popular payroll tax processing topics are available in the Alerts and notices section on the right side of most pages.

Use the Payment Terms screen to set up payment terms that can be used by the vendors and customers of the clients for which the Accounts Payable and/or Accounts Receivable service has been enabled. Accounting CS uses payment terms to determine due dates, discount amounts, and discount expiration dates for payables and receivables.

Choose Setup > Firm Information > Payment Terms.

Fields & buttons

  • ID and Description. Enter a unique ID (up to 11 alphanumeric characters) and a description (up to 30 alphanumeric characters) for the payment term. The ID and Description are available for selection in the following fields.
  • Inactive. Mark this checkbox to remove this payment term from the drop-down list in the payment term fields throughout the application. If a payment term is selected for any transactions before it is marked inactive, the application does not remove the payment term information from those transactions.
  • Method. 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.
  • Amount / Percentage. The name of this field changes based on the method you select. If you choose the Amount method, enter the dollar amount in this field. If you chose the Percentage method, enter the percentage for the application to use when calculating discount amounts.

Choose the method to use when determining the discount expiration date.

  • Day based. Choose this option to have the application calculate the discount date based on a specific number of days from the payable or receivable date. If you choose this option, enter the specific number of days in the Number of days from transaction date field.

    For example, if you choose this option and specify 15 days, the discount would expire 15 days after the date of the payable or receivable transaction.

  • End-of-Month (EOM) based. Choose this option 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 then specify the number of days from that month end.
    • Month to be based on. Select the month on which to base the calculation of the expiration date. 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.
    • Days +/- from EOM. Specify the number of days from the last day of the month. A positive number indicates the number of days after the last day of the month. A negative number indicates the number of days before the last day of the month.

      Examples: 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.

Choose the method to use when calculating the payable's or receivable's due date.

  • Day based. Choose this option to have the application calculate the due date based on a specific number of days from the payable or receivable date. If you choose this option, enter the specific number of days in the Number of days from transaction date field.

    For example, if you choose this option and specify 15 days, the due date would be 15 days after the date of the payable or receivable transaction.

  • End-of-Month (EOM) based. Choose this option to have the application 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 on which to base the calculation and then specify the number of days from that month end.
    • Month to be based on. Select the month on which to base the calculation of the expiration date. 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.
    • Days +/- from EOM. Specify the number of days from the last day of the month. A positive number indicates the number of days after the last day of the month. A negative number indicates the number of days before the last day of the month.

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

      • If you select EOM and 15, the due date will be February 15.
      • If you select EOM and 0 (or blank), the due date will be January 31.
      • If you select EOM+3 and -15, the due date will be April 15.
    • Cutoff day. Enter the number of days from the beginning of the month to represent the cutoff day. The due date for payables or receivables dated after the cutoff day will be moved to the following month.

      Examples: 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).

Related topics

Accounts Payable service, overview

Accounts Receivable service, overview

Setting up payment terms

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