In the Payment Terms window, you define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit Payables Invoice Validation for the invoice. You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.
Payment terms have one or more payment terms lines, each of 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 of the following:
a specific day of a month, such as the 15th of the month
a specific date, for example, March 15, 2002
a number of days added to your terms date, such as 14 days after the terms date
a special calendar that specifies a due date for 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.
Each payment terms line also defines the due or discount amount on a scheduled payment. When you define payment terms, you specify payment amounts either by percentages or by fixed amounts.
You can also enter default payment terms for supplier sites in the Suppliers pages. The payment terms for a supplier site default to the standard invoices you enter for the site, except in the following circumstances:
You enter a PO Default or QuickMatch invoice in the Payments window, in which case the terms default from the purchase order.
The system populates the PO specified payment terms to the invoice if you specify the PO number in the invoice header level. If you do not specify the PO number, even if you specify the PO number in the invoice line, the system uses the supplier site's payment terms. This usually happens when you have one invoice matching to multiple POs.
You import an invoice record that has payment terms specified on the record, or the import process can derive terms from purchase order matching.
You can override the default payment terms on any invoice.
Attention: If you update the payment terms on an invoice, Payables immediately recalculates the scheduled payment for the invoice. Thus, you must re-enter any manual adjustments you made to the previous scheduled payment. For example, if you update the payment priority on a particular scheduled payment and then change the payment terms, Payables will immediately recalculate the scheduled payment using the same payment priority defaults as before and you will need to update the payment priority again.
If you use Multiple Language Support (MLS), you can define payment terms in each of your installed languages. Select Translations from the toolbar or menu to enter the payment term name and description in other languages. When you select payment terms from a list of values, the payment terms on the list will appear in your language. For more information, see the Oracle E-Business Suite User Guide.
If you are defining calendar-based payment terms, define one or more payment terms type special calendars. See: Special Calendar.
In the Payment Terms window, enter a unique payment term Name and a Description. These will appear on a list of values whenever you select payment terms.
For detailed information on any field, see: Payment Terms Window Reference.
If you enter Day of Month terms, enter a Cut-off Day.
If you enable Automatic Interest Calculation using the Interest Payables Options, enter a unique value in the Rank field.
If you want to make this payment term invalid on and after a certain date, enter that date in the To field of the Effective Dates region.
Enter each payment terms line.
Enter one of the following to determine the portion of an invoice due on the scheduled payment:
% Due
Amount
In the Due tab, enter one of the following to determine the due date on the scheduled payment line:
Calendar
Fixed Date
Days
Day of Month, and Months Ahead
If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.
Note: You cannot use a special calendar to define discount terms.
Enter one of the following to determine the portion of the invoice to discount on the scheduled payment:
% Discount
Amount
In the Discount tabs, enter the discount percent.
Enter one of the following to determine the due date on the scheduled payment line:
Due Days
Day of Month, and Months Ahead