Accounts Payable Setup: Define Payment Terms

Define Payment Terms

Platform: R12

Payables Manager –> Setup –> Invoice –> Payment Terms

Payments Terms are assigned to an Invoice to automatically create scheduled payment when Payables Invoice Validation is submitted for the Invoice

You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.

Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on one of the following:

• a specific day of a month, such as the 15th of the month
• a specific date, for example, March 15, 2002
• a number of days added to your terms date, such as 14 days after the terms date
• a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.

Payment Terms

Define Payment Terms

1. Enter Unique payment term name and description.
2. If you enter Day of Month terms, enter a Cut-off Day.
3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a unique value in the Rank field.
4. Enter each payment terms line.

Enter % due or Amount to determine the portion of an invoice due on the scheduled payment.

In the Due tab, choose between Calendar, Fixed Date, Days and Day of Month and Months Ahead to determine the due date.

1. If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.

Note: You cannot use a special calendar to define discount terms.

(Document based on Oracle Window Help)

Bauccha Shameem

29 June 2009