Terms Codes

In order for the system to keep track of receivables and payables, there must be at least one terms code set up. The terms code describes the terms that you are extending to your customers. The terms code also describes the terms that your vendors are extending to your company.

Description
Enter the description for this set of terms. The terms description can be up to 20 characters long. Example: Net 30

COD, Prepaid, Due in # of Days
Choose the type of terms this code describes. COD = Cash on delivery or Due on Receipt; Prepaid = Customer has already paid for it; Due in # of Days = The balance is due in the number of days specified in the Net Due In xxx days field.

Net Due in xxx Days
Enter the number of days in which the balance will be due.

Discount in xxx Days
Enter the number of days you allow for discounts. If the customer pays within this number of days from the invoice date, the system will give him a discount calculated from the Discount Pct entered below.

Discount Pct
The percentage used to calculate the discount if you allow them.

Default Terms
Check this box to make the displayed terms the default terms used for any customer or vendor that does not have a particular terms code associated with them. This should only be checked for one terms code.