Define Payment Terms

Payables Manager -> Setup -> Invoice -> Payment Terms

Payments Terms are assigned to an Invoice to automatically create scheduled payment when
Payables Invoice Validation is submitted Ior the Invoice
You can deIine payment terms to create multiple scheduled payment lines and multiple levels oI
discounts. You can create an unlimited number oI payment terms.
Payment terms have one or more payment terms lines, each oI 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 oI the Iollowing:
O a speciIic day oI a month, such as the 15th oI the month
O a speciIic date, Ior example, March 15, 2002
O a number oI days added to your terms date, such as 14 days aIter the terms date
O a special calendar that speciIies a due date Ior 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. II you enter Day oI Month terms, enter a Cut-oII Day.
3. II you enable Automatic Interest Calculation using the Interest Payables Options, enter a
unique value in the Rank Iield.
4. Enter each payment terms line.
Enter due or Amount to determine the portion oI an invoice due on the scheduled payment.
In the Due tab, choose between Calendar, Fixed Date, Days and Day oI Month and Months
Ahead to determine the due date.
1. II you use discount terms, deIine payment terms lines in the First Discount , Second
Discount, and Third Discount tabs. DeIine your discounts so that the Iirst discount has an
earlier discount date than the second and so on. You can realize only one discount on a
payment terms line.
ote: You cannot use a special calendar to deIine discount terms.
Accounts Payable Setup: Set Multi-Org Preferences
Set Multi-Org Preferences (optionally required)
Payables Manager -> Setup -> Options -> User Operating Unit Preferences


Multi-Org PreIerences
II you are using a Multi-Org structure, and you want to restrict Org Access, then set the Multi-
Org PreIerences.
Set the User Level DeIault Operating Unit.
Set the PreIerred Operating Units.







Accounts Payable Setup - Define Payables Options
You cannot deIine the Payables Options unless the Financials Options have been deIined.
Payables Manager -> Setup -> Options -> Payables Options
Based on your proIile options, your Operating Unit` is automatically picked up.
1. Accounting Option

Payables Options: Accounting Option










. Currency

Payables Options: Currency

3. Tax Reporting


Payables Options: Tax Reporting

. Invoice

Payables Options: Invoice
. Approval

Payables Options: Approval
. Matching

Payable Options: Matching
. Interest
Payables Options: Interest
. Expense Report
Payable Options: Expense Report

. Payment
Payable Options: Payment
10. Withholding Tax
Payable Options: Withholding Tax

11. Report
Payable Options: Reports
Accounts Payable Setup - Financials Options
Prerequisite: Inventory Calendar and Inventory Organization must have been set up.
ReIer to the Iollowing documents:
DeIine Inventory Calendar
Setup Inventory Organization
Payables Manager -> Setup -> Options -> Financial Options
Based on your proIile options, your Operating Unit` is automatically picked up.
ReIer to the Iollowing documents:
System ProIile Values Ior GL
DeIine Operating Unit (Document to follow)
You have to Iill in the Iollowing tabs to conIigure the Financials Options:
1. Accounting
2. Supplier Purchasing
3. Encumbrance
4. Tax
5. Human Resources

1. Accounting
Financial Options: Accounting
SpeciIy the number oI Future Periods`. Fill in the GL Accounts where required.
Note: II during the deIining oI our Accounting Key FlexIield Structure, we have allowed
dynamic insert, we can enter the accounts directly without having to create the accounts Iirst. II
that is not the case, then we need to create all the valid accounts combinations beIore we can use
them here.
ReIer to the Iollowing documents:
DeIine Accounting KFF Create Chart oI Accounts
. Supplier - Purchasing
Financials Options: Supplier-Purchasing
SpeciIy the Ship-to Location and Bill-to Location. Inventory Organization is mandatory.
Note that we need to create the Inventory Organization and deIine the Additional Organization
InIormation Details.
3. Encumbrance
Financials Options: Encumbrance
SpeciIy the options Ior encumbrance iI you are using encumbrance accounting.
. Tax
Financials Options: Tax
SpeciIy your VAT Registration inIormation iI applicable.
. Human Resources
Financials Options: Human Resources
Based on your proIile options, your Business Group is automatically picked up.
SpeciIy your Expense Reimbursement Address`. The Employee generation method is
automatically picked up Irom the Extra InIormation conIigured on your Business Group.
ReIer to the Iollowing documents:
DeIine Business Group (Document to follow)