Maintain Terms Codes
Introduction
Use this function to add, change or inquire into, delete, or print a list of terms codes.
Each terms code represents a type of payment terms you give to at least one of your customers. Payment terms specify the following: how many days after a sale or what particular date the payment is due, whether there is a discount for early payment; and, if there is, how much is the discount and how early must payment be made to get the discount. Fields within this file also determine whether or not weekend days and holidays should be used as due dates.
Here are some examples of terms:
Code Payment Terms
210 = 2% off if paid in 10 days, net 30 days
N30 = Net 30 days
COD = Cash with order
N60 = Net 60 days
5D5 = 5% off if paid in 5 days, net 15 days
DUE = Payment due on a specific day of following month
BUS = Use business days only to calculate due dates
To access the Maintain Terms Code program, type RW (RET) at any menu "OPTION:" field or the appropriate number on the Rental Accounting Menu. The screen will then display the RealWorld Main menu. Type 1 (RET) at the Please select field and then Press
F2 to move to the second screen of
the Accounts Receivable menu. Finally, type 16 (RET). The screen will then display:
| Maintain terms codes Please select: _ 1. Add terms codes 2. Change/inquire terms codes 3. Delete terms codes 4. Print terms codes |
1. Add terms codes
From the Maintain terms codes menu, type 1. The screen now shows:
| Maintain terms codes Add 1 Terms code 21 Avoid weekend days? 2 Description 22 Avoid holiday days? 3 Due Days 23 Use Business days? 4 Discount days 24 Extended Code 5 Discount pct 6 Last Day of Period 1 7 Due Month for Period 1 8 Due Date for Period 1 9 Last Day of Period 2 10 Due Month for Period 2 11 Due Date for Period 2 12 Last Day of Period 3 13 Due Month for Period 3 14 Due Date for Period 3 15 Last Day of Period 4 16 Due Month for Period 4 17 Due Date for Period 4 18 Last Day of Period 5 19 Due Month for Period 5 20 Due Date for Period 5 |
Enter data as follows:
|
1. TERMS CODE |
Enter a terms code of up to 3 characters. (Allowed characters are 0-9, A-Z, and some special characters, such as colon (:), asterisk (*), and "at" sign (@).
EXAMPLE: Type STD (RET). |
|
2. DESCRIPTION |
Enter a description of the terms code, up to 15 alphanumeric characters.
EXAMPLE: Type Net 30 days. (RET) |
|
The Due date of an invoice can be determined in two ways: A. Use Fields 3 through 5. Here the number of days entered in Field 3 are added on to the invoice date in order to determine the due date. OR
B. Use Fields 6 - 20. These fields are used to designate a particular day of the month when invoices are due. NOTE: Entry of any data into Fields 3 through 5 "turns off" fields 6 through 20. |
|
|
3. DUE DAYS |
Enter the number of days (from 0 to 999) from the date of the invoice when payment is due. The number entered here is added on to the invoice date in order to determine the due date.
EXAMPLE: Type 30 (RET)
An invoice dated January 5 with 30 days would be due February 4th. |
|
4. DISCOUNT DAYS |
Enter the number of days (from 0 to 999) from the date of the invoice during which a discount will be given for early payment.
EXAMPLE: Type 5 (RET)
An invoice dated January 5th with 5 discount days would allow a discount if paid by January 10th. |
| 5. DISCOUNT PERCENT |
Enter the discount percentage (from 0 to 99.99) given if payment is made within the discount days.
EXAMPLE: Type 2.5 (RET) |
| 6-20 |
Fields 6 -20 can be used (instead of Fields 3 through 5) to define specific days of the month on which invoices are due. Up to 5 periods may be defined within the month. Each period uses 3 fields for data as follows: |
| LAST DAY OF PERIOD |
The first field is used to designate the
ending date of the period. For example, entering "10" into field 6 means that the first period is defined from the 1st of the month to the 10th. RAs that closed during that period will be due according to the data that is entered in Fields 7 and 8. EXAMPLE: Type 10 (RET) |
| DUE MONTH FOR PERIOD |
The second field designates the number of
months to add on to the invoice month to determine in which month the invoice
will be due. Enter zero if the payment is due in the same month as the month the RA closed, "1" if it is due the next month or "2" if it is due in two months after the closed date. EXAMPLE: Type 1 (RET) |
| DUE DATE FOR PERIOD |
The third field is used to designate the exact date on which the payment is due. Entering "31" in this field will cause invoices to be due on the 30th in months that only have 30 days. Entering 29, 30 or 31 will cause invoices which are due in February to be due of the 28th (or 29th in leap years). EXAMPLE: Type 15 (RET) Using the data from the three examples above, RAs that close within the first ten days of a month will be due by the 15th of the following month. So for an example, a contract with a balance due that closed on June 4th must be paid by July 15th or it will be past due. User Tip: Field 23 changes the definition of the Due Date for Period field. See that definition in the explanation of Field 23 below. |
EXAMPLE:
In this example, we will assume that the month is divided into 3 periods:
|
Period |
Invoice dates |
Due date |
Example: |
|
1 |
1st - 10th |
last day of this month |
Invoice dated April 8 would be due on April 30 |
|
2 |
11th - 20th |
15 of next month |
Invoice dated April 16 would be due on May 15 |
|
3 |
21st - 31st |
1st of month after next month |
Invoice dated April 30 would be due on June 1 |
To set up period one using the above policy example, enter as follows:
Field
6. Last day of period 1 = 10 (first period ends on the 10th)
7. Due month for period 1 = 0 (add 0 months to the invoice month, it is due within the current month)
8. Due date for period 1 = 31 (invoices dated 1 - 10th are due by the last day of the current month.)
To set up period two using the above policy example, enter as follows:
Field
9. Last day of period 2 = 20 (second period ends on the 20th)
10.Due month for period 2 = 1 (add 1 month to the invoice month)
11. Due date for period 2 = 15 (invoices dated 10 - 20th are due by the 15th of the next month.)
To set up period three using the above policy example, enter as follows:
Field
12. Last day of period 3 = 31 (third period ends on the last day of the month - designated by 31st )
13. Due month for period 3 = 2 (add 2 months to the invoice month)
14. Due date for period 3 = 1 (invoices dated 21st - 31st are due the 1st two months from now.)
If the month is to be broken up into smaller segments, Fields 15 - 17 can be used for a fourth period and Fields 18 - 20 for a fifth period if desired.
|
21. AVOID WEEKEND DAYS? |
This field determines if a due date will ever fall on a Saturday or Sunday. Enter one of the following:
EXAMPLE: Type Y (RET) |
|
22. AVOID HOLIDAY DAYS? |
This field determines if a due date will ever fall on a holiday day. Enter one of the following:
EXAMPLE: Type Y (RET) |
| 23. USE BUSINESS DAYS? |
Indicate
if due dates should be calculated using business days only instead of all
calendar days. "Business
Days" are defined as Monday through Friday with the exception of defined Holidays. Enter:
EXAMPLE: Type Y (RET)
Note: If business day calculation is chosen, please consider the following:
A. Instead of treating the entries made in Fields 8, 11, 14, 17, and 20 as "dates", they are treated as days. In particular, they are considered the number of business days that must elapse in the month in question.
B. Because an average month has 22 business days, entering a number of due days greater than 22 will cause the due date to calculate into the next month. An example below is used to illustrate this concept.
Assume Fields 6 - 11 have data entered as follows:
Example: RA closes July 25, 2011. Here's the calculation of the due date based on Business days only and the set up illustrated above:
The closing date falls in the second period (between the 11th and the 31st of the month.) Field 10 shows that the due date will be in August, the month following the closing date of the RA. Since August has only 23 business days in 2011, and 28 days are defined in Field 11, the due date would be advanced to the 5th business day in September which is Sept. 7. This is providing no holidays were defined within that time span of August 1 to Sept. 7. If any holidays were defined, then the due date would be extended out further.
Due date = September 7, 2011
|
| 24. EXTENDED CODE |
This field is used for clients who integrate with the SAP Accounting Package. Enter the 6 alphanumeric code that represents the Extended Code. EXAMPLE: PRESS(RET) |
The screen will then display:
| Maintain terms codes Add 1 Terms code STD 21 Avoid weekend days? Y 2 Description NET DUE 20 22 Avoid holiday days? Y 3 Due Days 23 Use Business days? N 4 Discount days 24 Extended Code 5 Discount pct 6 Last Day of Period 1 10 7 Due Month for Period 1 0 8 Due Date for Period 1 31 9 Last Day of Period 2 20 10 Due Month for Period 2 1 11 Due Date for Period 2 15 12 Last Day of Period 3 31 13 Due Month for Period 3 2 14 Due Date for Period 3 1 15 Last Day of Period 4 16 Due Month for Period 4 17 Due Date for Period 4 18 Last Day of Period 5 19 Due Month for Period 5 20 Due Date for Period 5 |
Upon pressing (RET) in the last field, the prompt: "FIELD NUMBER TO CHANGE" displays at the bottom of the screen. Make any desired changes; then press ENTER.
When no more terms codes are to be added, press END (TAB) at the TERMS CODE field. The Maintain terms codes menu reappears.
OTHER OPTIONS ON THE MAINTAIN TERMS CODE MENU
2. Change/Inquire terms codes
From the Maintain terms codes menu, type 2.
A screen appears for entry of the terms code that you want to change or inquire into. Enter the number or use F1 to display each code in order, as instructed at the bottom of the screen. The terms code entered must be on file to be valid. Once you enter a valid terms code, the remaining data fields display automatically.
Make any desired changes by selecting the number of the field that you want to change, then entering the new data. Press ENTER at "FIELD NUMBER TO CHANGE ?" to file the changes. The screen clears for entry of another terms code.
When no more terms codes are to be changed or inquired into, press END at the TERMS CODE field. The, Maintain terms codes menu reappears.
3. Delete terms codes
From the Maintain terms codes menu, type 3.
A new screen displays for entry of the number of the terms code that you want to delete. Enter the code or use F1 to display each code in order, as instructed at the bottom of the screen.
Delete the code by typing Y, or press ENTER to bring up an empty screen for entry of another code to delete.
If there are no more terms codes to be deleted, press END. The Maintain terms codes menu reappears.
4. Print Terms Code List
From the Maintain terms codes menu, type 4.
A menu appears for you to select how to print the report. Follow the screen instructions. Refer to the chapter titled General Rules for a detailed explanation of the printing options.
To end this function
To end the Maintain terms codes function, press END as the menu selection. The Accounts Receivable menu reappears.