Vendor Payment Terms: Discounts and Net Due Dates

Vendor Payment Terms: Discounts and Net Due Dates

Vendor Credit Terms such as due dates of Net 30, Net 15, Net 10, and any associated discounts, can be managed in Vendor Maintenance. Once defaults are set up, entering Vendor Invoices is quicker and that data is then helpful when managing payments to Vendors to capture discounts where earned. This information can be easily overridden in the system both when an Invoice is added and when an Invoice is paid. The system allows for the option of entering three sets of discount terms along with a Net due date in these fields.

 To set-up/maintain the discount Payment Terms for a Vendor:
  1. Navigate to Accounts Payable/Vendor Maintenance
  2. Enter or select by Lookup/ Querying the Vendor ID
  3. Select the Vendor
  4. Review the Payment Terms portion of the Vendor Maintenance
  5. Enter the Discount percentage in the 1st Discount field: i.e. 5 for 5%
  6. Enter the Day:  # of days that the discount is applicable i.e 10, 15, 20, 30, etc
  7. Enter the Method: Default is set to “D” for Days or “P” for Prox
Follow the same steps for the next six fields to enter your 2nd and 3rd set of terms for this vendor, if applicable. If none apply, simply enter through these fields or leave them blank.

If the Vendor only offers a Net Due Date of XX number of days, you can enter through/bypass the 1st, 2nd, and 3rd Discount fields and enter the number of days to pay in the Net field.
 

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