Enter Payment Terms

Explanation

This activity is used to enter payment terms that are used in IFS/Invoice and IFS/Payment. This mandatory task is to be performed by a system administrator or equivalent person. You will also have to enter payment term details on the payment term you entered by right-clicking on the payment term line and selecting Payment Term Details. Otherwise, the payment term will not be possible to be used in the system.

Payment terms are used when you enter customer and supplier invoices for calculation of the due dates for the invoices. The payment terms set for a customer or supplier will be suggested when invoices are entered. You can change any default payment terms shown for either customer or supplier.

When the system is installed, payment terms are created automatically depending on the template used when creating the company.

Prerequisites

This activity has the following prerequisites: 

• The company must exist in IFS Financials.

System Effects

As a result of this activity:

• Various payment terms can be used when entering customers, suppliers, customer invoices, and supplier invoices.

Window

Payment Terms

Related Window Descriptions

Payment Terms
Payment Term

Procedure

To perform this activity, follow these steps:

1. Open the Payment Terms window.
2. Create a new record.
3. In the Payment Term field, enter up to 20 alphanumeric characters for the payment terms code.
4. Enter a suitable description.
5. Select the Use Commercial Year check box if you want every month to be equivalent to 30 days.
6. In the Tax Distribution field, select how you want the tax to be distributed among the installments.
7. Select the appropriate check boxes to set whether or not the payment term should consider payment vacation periods, if it should be blocked for direct debiting and if it should be Excluded from Credit Control.
8. When creating customer invoices with the Swiss ISR slip, select the Suppress Amount check box if you want to print the ISR slips without an amount, e.g. in the case where the customer might be given a cash discount.
9. Select the Apply Cash Discount to Fixed Assets Acquisition Values check box if you need to reduce the acquisition values of Fixed Assets objects by a received cash discount.
10. Save the changes.