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For example, you can instruct the system to: Before you set up advanced payment term codes, you must define the rules that the system uses to calculate due dates for invoices and vouchers.

Use net payment terms to specify the due date of the transaction by adding some number of days to the invoice date of the transaction.Assume that you specify net 30 days to pay and you enter a transaction with an invoice date of June 14. In addition to specifying the net days to pay (or due date), you can specify the discount percent and the discount days.You can specify a default payment term on the customer and supplier records.Then, when you enter a voucher or invoice for that customer or supplier, you can either accept the default value or override it with a different payment term.Assume that you set up a payment term code for: Before you set up due date rules, set up work day calendars using the Work Day Calendar program (P00071).

Calendars enable you to specify actual work days, weekends, holidays, and other user-defined types of days for your organization.The system multiplies the gross amount by the discount percent to calculate the discount available, and adds the discount days to the invoice date to calculate the discount due date.The system calculates a discount due date of June 24 and a net due date of July 10.The customer has until June 24 to remit their payment to receive a 1 percent discount; otherwise, the payment is due July 10.Use split payment terms when you want the system to divide the transaction evenly into multiple payments with different due dates and the number of days between the second and subsequent payments is constant.The system uses the information for the payment term code to calculate the values for the due date, discount available, and discount due date on the invoice and voucher entry forms.