Terms of Payment
Terms of payment refers to the conditions set by the vendor for payment purpose in order to receive payment early. If payment is made within certain conditions set by vendor deduction is allowed i.e cash discount percentages based on payment due dates.
Example:
a. Cash discount of say 3% is allowed if payment is made within 10 days
b. Cash discount of say 2% is allowed if payment is made within 20 days
Configuration of Terms of Payment
1. Maintain Terms of Payment
2. Creation of GL Master - Cash discount received under other income group
3. Assignment of Accounts for Automatic Postings
End User Area
1. Purchase Invoice Posting
2. Display Vendor Account Transaction
3. Outgoing Payment with Clearing
4. How to View Discount Received
Terms of payment refers to the conditions set by the vendor for payment purpose in order to receive payment early. If payment is made within certain conditions set by vendor deduction is allowed i.e cash discount percentages based on payment due dates.
Example:
a. Cash discount of say 3% is allowed if payment is made within 10 days
b. Cash discount of say 2% is allowed if payment is made within 20 days
Configuration of Terms of Payment
1. Maintain Terms of Payment
2. Creation of GL Master - Cash discount received under other income group
3. Assignment of Accounts for Automatic Postings
End User Area
1. Purchase Invoice Posting
2. Display Vendor Account Transaction
3. Outgoing Payment with Clearing
4. How to View Discount Received