Setup Terms

Navigation: From the Main Menu select Setup Entry and then press the Terms button.

Within the Terms tab you will setup your various terms for your customers and vendors. At least one of these terms must be Cash terms with the checkbox in the Cash column checked. You can create several other terms including Net 30, terms that involve discounts for early payment, and even 30/60/90 terms with a separate discount for each month.

Creating a New Term

• Press the New button.
• In the Description field enter the name for your term.
• If these are Cash terms check the Cash box.
• If these terms will be used for Vendors only, check the appropriate box.
• Check the Active box to make this term available.
• Save changes.

Details:

Delete

Deletes the selected term.

Due By

If these terms are to be used for invoices that are due by a certain day of the month, click the round radio button by Date, and select which day of which month it will be due. For example, if the terms are Net 10th, select the 10th day of the month.

Discount #1-#3

If this term item is to be used for invoices that are to be discounted if paid early, enter the discount percentage under Discount #1. After the percentage is entered, you can then enter the day of the month or the number of days that the discount is valid. For example, if the terms are 2% discount if paid in full by the 10th day on a Net 30 account follow these steps:

• Under the Due By heading click the radio button and enter 30 to represent 30 days.
• Under the Discount #1 heading enter 2 to represent 2%.
• Under the Discount #1 heading, click the top radio button and select 10th.
  

Now in both the Customer Payments window and the Vendor Payments Window, when invoices or bills with discounted terms are paid early, the discount is automatically applied (although it can still be overridden.)

*Note: If the term item is to be used for invoices that can be paid over two or three payments but still get discounts, you can use the 2nd and 3rd discounts. Simply follow the steps shown in setting up the Discount #1 section above to enter the discount percentages and due dates.