Documentation >
MAC-PAC Reference Library >
Financials >
Accounts Payable >
Key Concepts and Procedures >
Generating Installments >
Maintaining Credit Terms
Maintaining Credit Terms
Although credit term definitions are stored on Reference File categories 223 and 247, you may only maintain the definitions through the Credit Terms Maintenance conversation in Accounts Payable. Credit terms are identified by a two-character code and contain information on discounts, due dates, payment types, and installment payments.
To maintain credit terms, select the option for Credit Terms Maintenance from the Accounts Payable menu. The function select screen is displayed for you to enter the two-digit credit terms code that you wish to maintain and the transaction code (add, change, delete, inquire). The figure below shows a sample of this screen.
WILLIAMS COMMON FEATURES 1/13/93
DSP01 CREDIT TERMS MAINTENANCE FUNCTION SELECT
Credit Term BA
Transaction Code A
A - Add
C - Change
D - Delete
I - Inquire
F2=Command F3=Exit F4=Prompt
|
Credit Terms Maintenance Function Select Screen
When you press Enter, the detail screen is displayed with the information defined for the credit term (for change, delete, and inquire) or with default values (for add). The next figure shows the detail screen for the Credit Terms Maintenance conversation.
WILLIAMS COMMON FEATURES 1/23/93
DSP01 CREDIT TERMS MAINTENANCE CHANGE
Credit Term BA Description 5 PMTS DUE ON 15TH
Total Number of Installments 5 Net Days/Date 0
Discount Percent .00 Net End of Month N
Day/Date Qualifier 1 Delay Days 2
Discount Days/Date 0 Default Payment Type
Discount End of Month N Installment Shift 15
From Date of Code 1
Accumulated Installments 5 100.00 Renumber by: 0
Seq Num Inst Pmt Type Days Percent
10 1 CK 10 50.00
20 2 CK 10 25.00
30 2 CA 10 25.00
40 0 0 .00
50 0 0 .00
60 0 0 .00
F2=Command F3=Exit F4=Prompt F10=Function Select
F18=Renumber F22=End Tran
|
Credit Terms Maintenance Detail Screen
As shown in the above figure, the credit term (BA) contains definitions for five installments (sequence number 10 will generate one installment and sequence numbers 20 and 30 will each generate two installments). The Installment Shift field in the header portion is used to specify the day of the month on which all installments will be due.
On each detail line you can create a different installment definition by specifying the following information:
· the number of installments to be generated based on the information on the detail line,
· the payment type for each installment,
· the minimum number of days between the due dates of each installment (the due date is calculated based on the value entered in the Installment Shift field and the value entered in this field),
· the percentage of the total invoice to be paid by all of the installments (this percentage is divided by the number of installments to determine the total for each installment).
Interpreting the Installment Detail Lines
The first detail line in the Credit Terms Maintenance Detail Screen creates one installment (number of installments) to be paid by check (payment type) with a due date at least 10 days after the invoice is created (number of days). The installment from line one will be 50% of the total invoice (percent).
The second detail line creates two installments to be paid by check with a due dates at least 10 days apart. Each installment from line two will be 12.5% of the total invoice (25% divided by 2 installments = 12.5% each).
The third detail line also generates two installments with due dates at least 10 days apart and pay a total of 12.5% of the total invoice, but these must be paid in cash.
For example, if you created an invoice on January 1, 1999 for $1,000 with the credit term described above, the following installments would be generated (see the following figure).
|
|
|
|
|
|
|
$500
|
1/15/99
|
Check
|
50% * $1000 = $500
|
From the first detail line for the payment term, 50% of the total, due at least 10 days after the invoice date on the 15th.
|
|
$125
|
2/15/99
|
Check
|
12.5% * $1000 = $125
|
From the second detail line for the payment term, 12.5% of the total (25% divided by 2 installments), due at least 10 days after previous installment on the 15th.
|
|
$125
|
3/15/99
|
Check
|
12.5% * $1000 = $125
|
From the second detail line for the payment term, 12.5% of the total (25% divided by 2 installments), due at least 10 days after previous installment on 15th.
|
|
$125
|
4/15/99
|
Cash
|
12.5% * $1000 = $125
|
From the third detail line for the payment term, 12.5% of the total (25% divided by 2 installments), due at least 10 days after previous installment on 15th.
|
|
$125
|
5/15/99
|
Cash
|
12.5% * $1000 = $125
|
From the third detail line for the payment term, 12.5% of the total (25% divided by 2 installments), due at least 10 days after previous installment on 15th.
|
Installment Calculation Table
The Invoice and DR/CR Memo Entry - Installment Detail Screen for an invoice generated using the credit terms discussed above is shown below.
WILLIAMS ACCOUNTS PAYABLE USD 1/23/93
DSP01 INVOICE DR/CR MEMO ENTRY INSTALL
Vendor BCA00001 BCA MANUFACTURING
Paying Co/Loc 001 BRU Document IN INV000000020
Orig Co/Loc 001 BRU Doc Date 01 01 99
Credit Terms BA 5 PMTS DUE ON 15TH
Gross 1,000.00
Ins Installment Amt Due Date Pay Date Pmt Type Bank Code Separate Pmt
001 500.00 01 15 99 01 17 99 CK B1 N
002 125.00 02 15 99 02 17 99 CK B1 N
003 125.00 03 15 99 03 17 99 CK B1 N
004 125.00 04 15 99 04 17 99 CA B1 N
005 125.00 05 15 99 05 17 99 CA B1 N
F4=Prompt F7=Header F12=Comments F13=Cancel Trans
|
Installment Detail Screen
Note: For credit terms with installments, you may not enter values for the following fields on the header portion of the detail screen: Net Days/Date, Discount Percent, Net End of Month, Day/Date Qualifier, Discount Days/Date, and Discount End of Month. If you are not defining installments for the credit term, the Total Number of Installments Field must be zero.