4.5 Payment Terms

Payment Terms define the payment rules that determine the settlement day of a specific deal. These rules are essential for managing financial transactions and ensuring proper payment scheduling. In this tab, the user can manage payment rules, which can later be applied for settlement purposes in “Deals” and the produced order items and “Master Agreements”.

This article provides step-by-step instructions for managing Payment Terms information within the system. The system allows users to create, modify, export, and manage Payment Terms data efficiently.

Create a new Payment Term

The user can make a new record by pressing the “+” button at the top of grid. Then, a pop-up window opens, where the user can insert information about the payment terms, as described in the Table below, and press the “Save” button. It should be noted that all fields with an asterisk (*) are mandatory and should be filled.

The “Day Type” standard options are:

• Calendar Day [CD]

• Business Day [BD]

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The “Period” standard options are:

• Day [D]

• Month [M]

• Year [Y]

• Week [W]

• Quarter [Q]

The “Reference Type” standard options are:

• Transactions Day [TD]

• Start Delivery [SD]

• End Delivery [ED]

• Delivery Date [DD]

Finally, user should fill in the offset days which refer to “Day Type” and offset Period which refers to “Period” in order to complete the payment rule. Optionally, a memo may be kept for easier future reference. After filling relevant fields user must click "Save" button.

Example

In the screen below, the payment term constructed by the user is +10 BD M+1 (DP) meaning that the due date for settlement is the 10th Business Day (BD) of next month (M+1) compared to the Delivery Period (DP). In offset fields negative values refer to past, 0 refers to "today" while positive values in future. This payment term may then be associated with a Master Agreement or even directly with a deal under Deal Capturing module. The user can create as many payment terms as desired.

Edit/Delete payment terms

There are two ways to modify Payment Terms details:

1.       by double-clicking on a Payment Term entry or

2.      select the "pencil" icon in the 'Actions' area.

The user shall make the necessary changes in the Payment Term’s details and click the “Save” button to update the information.

To remove a Payment Term from the system the user shall:

1.      right click on the specific payment term or click the “trash can” icon from the actions area and

2.      select “Delete Payment terms”.

 Confirm the deletion when prompted to permanently remove the Payment Term from the system.

⚠ Note: If a Payment Term is linked to master agreements or deals, the user will receive a warning message when attempting to delete it. The system will prompt the user to unlink the payment term by pressing “View: button, from all associated Master Agreements or deals before proceeding with the deletion as illustrated below.

Appendix: Input details