SpendMap User Guide (v14.5)

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Navigation: Purchasing (Main Module) > Master Files

Terms of Payment Master File

PURCHASING > Master Files > Terms of Payment > Add/Modify/Delete

Terms of payment codes print on Purchase Orders and describe the conditions of payment for the order and typically specify the period allowed for the buyer (you) to pay the amount due.

Terms of payment are also used to calculate early payment dates and discounts when approving invoices with the optional Invoice Approval Module. Those details can then optionally be sent with each invoice (check request) to your Accounts Payable system via the A/P Interface.

Terms of Payment field options

You can make the field mandatory on certain documents (e.g. PO, Req, and RFQ) with the applicable Document Page Layout Utility.

Alternatively, you can make the field mandatory on selected screens with the Field Access Restrictions utility.

Other ways to populate the Terms of Payment Master File

Terms of Payment can also be added "on-the-fly" as you work in other areas of the system.

Tracking changes

You can track changes to this master file with the Master File Update Log.

Payment Discount Log

For many organizations, the ability to pay invoices quickly and take advantage of early payment discounts is a key performance indicator (KPI) for the Accounts Payable Department. You can keep track of payment discounts related to invoices with the Payment Discount Log Report.

Defaulting

To reduce data entry, the Terms can default on POs and other documents based on the selected supplier.

Terms of Payment Master File Screen

Fields

Field

Description

Code

•The Terms of Payment Code is used to reference the Terms on screens and reports and may print on POs and other documents.

•Can be 15 characters in length and any combination of letters, numbers, or spaces.

•This is a mandatory field.

•Once the information is saved, you will not have access to this field. To modify an existing Terms of Payment Code, use the Rename Utility

Description

•Description of the Terms of Payment.

•May show on some screens and reports.

•This is a mandatory field.

Print on PO as

•If the (internal) code that you use for the Terms (above) is not meaningful enough for your suppliers, you may enter an alternate Terms of Payment here which will replace the Code, above, on POs and other forms.

Skip number of days from Invoice Date

•Used when calculating payment dates in the Invoice Approval Module, this is the number of days from the Invoice Date that the Invoice must be paid.

Examples:

oFor NET 30 day terms, enter 30.

oFor C.O.D., enter 0.

oFor payment on the date that the Invoice was entered, enter -1 (negative 1).

oFor payment on the 15th of the month, enter 15 (see also “Skip number of months from Invoice Date”, below).

oFor payment at the end of the month (SpendMap will determine the last day for the respective month), enter 99.

Skip number of months from Invoice Date

•Used when calculating payment dates in the Invoice Approval Module, this is the Number of Months from the Invoice Date to skip.

•A value of 0 (zero) indicates the current month while a value of 1 indicates the next month.

Example:

oFor NET 30 day terms, enter 0.

oFor payment on the 15th of the following month, enter 1.

oFor payment on the 15th of the second month following, enter 2.

Discount %

•Used when calculating early payment discounts in the Invoice Approval Module, this is the percentage discount available for early payment.
See also “Discount days”, below.

Example:

For a 2% discount (e.g. 2%10, NET 30), enter 2.

Options

SpendMap will calculate the payment discount amount either based on the net invoice amount (i.e. the amount without taxes) or the gross invoice amount (i.e. the amount including taxes), based on the applicable setting in Invoice Options.

Discount Days

•Used when calculating early payment discounts in the Invoice Approval Module, this is the number of days from the invoice date within which the early payment discount (see “Discount %”, above) is available.

Example:

For a 10 day discount (e.g. 2%10, NET 30), enter 10.

Accounting Code

•This can be used to replace the Terms of Payment Code specified in SpendMap when exporting transactions to your Accounting/financial/ERP or other systems.

•If this field is populated, the contents of this field it will be used instead of the Terms of Payment Code entered in SpendMap, when performing transactional interfaces, such as when passing invoices, receipts or other transactions from SpendMap to another system, as well as on related reports.

•Sometimes called "code mapping", this allows you to use different coding in SpendMap than in your other systems.