Payment Terms Code

The payment terms code identifies cash discount and due date information for a customer.  Its decoded value specifies the cash discount percentage, the number of days that the cash discount applies, the number of days until payment is due, and whether the cash discount and due dates are calculated based on the document date or end of the current month.  

You may also define payment terms that create a series of installment payments.  If you define a payment term with installments, the AR and OP invoicing programs create installment payments based on the information defined for the payment term.  

At order entry time, the header screen is formatted using the payment terms code from the bill-to customer's Customer Master File record.  These terms may be overridden on all header records, except when entering credit memos.  The terms may be overridden at any time until shipping and billing occurs.  Payment terms are printed on the sales order and the invoice.