TE01.2 - Maintenance
Use Maintenance (TE01.2) to define and maintain terms codes. There are
five types of terms codes in the Lawson Terms application (Net, MultiplePayment, Split, Fixed Days, Prox, and Prepayment); each type has a separate page.
NOTE You can access Preview (TE01.3) to test a terms code using a sample
transaction date and amount.
- Use the Net page to define and maintain net terms codes.
- Use the Multiple Payment page to define and maintain multiple
payment terms codes. If you define Discount Options for a multiple payment
terms code, the discounts are applied to all payment obligations for thetransaction. You can define multiple discounts for the Lawson Accounts Receivable application.
You can define multiple discounts for the Lawson Accounts Receivableapplication.
IMPORTANT Lawson Accounts Payable (AP) application cannot use the multiple
discount functionality. AP can store only one discount code.
- Use the Split page to define and maintain split month payment
terms codes.
- Use the Fixed Days page to define and maintain fixed terms
codes. Fixed terms do not contain discount information. The Days forAdjustment are used when a calculated due date falls between two fixed paymentdays you define. For example, if you define the Fixed Payments Days of the Month (net due days) as the 10th and 18th of the month, and the calculated dayto the first due date is the 13th, an adjustment to one of the two due dates is required.
If you define the Days for Adjustment days as 3 or more, the 10th would be
the first net due day because it is within 3 days of the calculated due date.
If you define the Days for Adjustment days as 2 or fewer, the 18th would be
the first net due day because the 10th is not within 2 days of the calculated
due date.
- Use the Prox page to define and maintain prox terms codes.
- Use the Prepayment page to define and maintain prepayment
terms codes. When you assign a prepayment terms code to a transaction, the
calculated net due date will be the transaction date and no discount will
be applied.
Net Terms tab:
Net terms are used to establish a net due date based on a set number of daysfrom the invoice date. The program calculates the discount amount and the discount date from the discount percent and the discount day.
For the discount logic to be valid, both the discount percent and discountday must be entered. The discount percent cannot be greater than 100, and the discount day must be less than the net due day.
Multiple Payment Terms tab:
Multiple payment terms are used to create multiple due dates for a singleinvoice. A hierarchy of discount dates and percentages is optional.
Discount Logic - Discounts are only offered if a payment is made before thefirst obligation date. Payments must be made on or before a discount date for a discount to be granted. The discount amount is calculated by multiplying thediscount percentage by the total open obligation amount. If the payment amountis less than the amount due, the remainder is due on the obligation date. If the payment amount is enough to cover more than one obligation, the remaining obligations are not due until the originally defined due dates.
Split Term tab:
Split terms define the net due date and discount date as a specific day ofthe month, depending on the invoice date. Split terms can divide a month into five segments, each having a unique net due date and discount date.
The entire range of invoiced dates can only include two overlapping months.The program calculates the ending day of the range from the beginning day of the next range.
What Is the Difference Between Prox and Split Terms?
You can define specific days of the month as the net due date and optionaldiscount dates with both split and prox terms. Split terms have the added ability to split a month into five segments, each having a unique net due dateand discount date.
The key difference is the number of due dates during the month. Use Proxterms to limit the number of due dates to one per month. Use split terms to have more than one net due date each month.
Fixed Days tab:
Fixed days terms can establish obligations on certain days of the month ordays of the week. There are no discounts allowed with this type of terms code.
Calculation of First Due Date
- The calculation of the first due date depends on several user definedvariables. The number of days between the invoice and the first obligation isused to calculate the date of the first obligation.
- The days for adjustment, if entered, are also used to calculate the date ofthe first obligation. Days for adjustment are used when a calculated due date falls between two fixed days of the month.
- The days between payments will adjust multiple obligations to be at leastthat many days between obligations. If this number is larger than the number of days between the fixed payment days (depending on the size of the adjustment days range), it can cause the application to skip over a fixed payment day.
Prox Term tab:
Prox terms define a specific day of the month as the net due date andoptional discount due date. Use prox terms to establish a net due date for allinvoices generated during a defined period. For example, paying all invoices due on or prior to the 25th of the month.
Prox is a term that comes out of the retail industry and means "next ofmonth." Invoices that did not meet the designated "cutoff" date for one month,would be paid in the next month. This is similar to the rationale credit card companies use to produce billings; our monthly bill includes charges up to a specified cutoff date. All charges made after that date are put on the following month's bill.
Prepayment tab:
Use prepayment terms when an invoice is to be prepaid or when an invoicerequires cash on delivery.
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File created: Thu Jun 09 02:33:00 2016
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