You assign supplier terms on the A/P Demographics screen for a supplier. The supplier terms include when you need to pay a supplier invoice and any available discounts if you pay a supplier invoice within a particular time frame.
The Discounts Past Due Setting (AP060) organization parameter, available in the Account Payable Configuration window, provides enhanced control over automatically applied supplier discounts based on Supplier Terms.
If the Discounts Past Due Setting field in the Accounts Payable Configuration window is set to:
- Do Not Discount: If the period for the discount configured on the Supplier Terms assigned to a supplier account's A/P Demographics has passed, discounts will not be added to a payment. It is still possible for the user to manually add discounts to payments being made outside the discount period.
- Default to Full Discount: Payables users will continue to receive a warning when a payment is outside the discount period and, if the discount is not applicable, they must manually update the voucher line to remove the discount.
In addition, if a Voucher has passed the net date and has a discount applied, the Supplier and Discount fields will show as orange on the Add Payment Processing Batch window. If the voucher has passed it's due date, the same fields will show as red.
This new setting will be set to Default to Full Discount at the time of release, since that behavior matches the current behavior in the application. If you do not see the Discounts Past Due Setting field in your Accounts Payable Configuration window, you may need to add the field to your layout.
Add a Supplier Term
- Click the Supplier Terms link from the Main Menu. The Supplier Terms screen opens.
- Click the Add button. The Add Supplier Terms screen opens.
- Enter the necessary information:
- Description - Name of the supplier term.
- Code - Unique alphanumeric value used by the system.
- Discount Days - Number of days from the invoice date a discount is available.
- Net Days - Number of days to pay the net balance of the invoice.
- Abbreviated - Shortened description.
- Discount Percent - Available discount percentage if the invoice is paid within the Discount Days.
- End of Month - If checked, the supplier must receive the payment by the end of the month.
- Status - Only Active supplier terms are available for selection on the A/P Demographics screen for a supplier.
- Click OK.
Change a Supplier Term
You can change the information for the supplier term after you have created it. When you change the supplier term information, it updates wherever the supplier term is used. If you don't want to update the already existing supplier term data, then you must add a new supplier term using the steps in Add a Supplier Term.
- Click the Supplier Terms link from the Main Menu. The Supplier Terms screen opens.
- Select the supplier term to edit.
- Right-click and select Edit. The Edit Supplier Term screen opens.
- Make the desired change.
- Click OK.
Inactivate a Supplier Term
If you no longer use a supplier term but want to keep record of it for reporting or other purposes, you can make it inactive. When you make a supplier term inactive, it is no longer available for selection on the A/P Demographics screen for a supplier.
- Click the Supplier Terms link from the Main Menu. The Supplier Terms screen opens.
- Select the supplier term to make inactive.
- Right-click and select Edit. The Edit Supplier Term screen opens.
- Select Inactive from the Status drop-down.
- Click OK.
Delete a Supplier Term
If you no longer use a supplier term and don't want to keep a record of it, you can delete it. When you delete a supplier term that is used, you receive a prompt to select a supplier term to replace the supplier term you are deleting. You cannot undo the delete or delete and replace process.
- Click the Supplier Terms link from the Main Menu. The Supplier Terms screen opens.
- Right-click on the supplier term to delete.
- Select Mark for Delete.
- Click the Save button. If the supplier term is used, the Replace screen opens.
- Select the supplier term from the drop-down to replace the deleted supplier term.
- Click OK.
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