Payment Terms (Vendor Defaults)

Standard Terms

If the Use Standard Terms check box is selected for a vendor record in the Maintain Vendors window, that vendor uses this default set of terms. Below are the fields that define standard terms:

C.O.D, Prepaid, Due in number of days, Due on day of next month, Due at end of month: Select one of these to tell you when you need to make your payments.
Net Due in ... Days/Due on the ...: Enter the number of days past the invoice date before the invoice becomes due. If you chose the Due on day of next month option, enter the day of the month.
Discount in ... Days: If you chose the Due in number of days option, enter the number of days past the invoice date beyond which you will not be allowed a discount by the vendor.
Discount %: If payment is made within the Discount Days range, enter the percent of the total invoice amount that you will be allowed as a discount. Enter fractions as decimals; for example, two-and-one-half percent should be entered as 2.5.
Credit Limit: Enter the total amount of credit you are allowed by the vendor.

G/L Link Accounts

These defaults are used to link purchase and discount G/L accounts to your vendors. You can change the accounts for individual vendors, if necessary.

G/L Expense Account: Enter the ID of the liability or expense account you usually use for purchases. You can change the account entered at the vendor level (Maintain Vendors) or when entering purchases (Purchases/Receive Inventory or Purchase Orders).
Discount G/L Account: Enter the ID of the account you want to use for early-payment discounts you take.

To display a list of existing accounts, type ? in the G/L Account ID field, or select the Lookup button. To add a new account, type + or double-click the field, which displays the Maintain Chart of Accounts window.