Introduction to Payment Terms
Payment terms control when payment is due and what discount is applied if it is received within a certain time frame. For example, the payment term 2% 10 Days/Net 30 Days indicates that payment must be received within 30 days, and there is a 2% discount if it is received within 10.
Two payment term abbreviations used with reference to due dates are prox and EOM. Both refer to due dates being in the following month rather than the current one. Prox is short for "proximo mense," Latin for "in the following month." EOM stands for "end of month." A payment term of Net 30 prox indicates that payment is due on the 30th day of the next month.
Date-Driven and Relative
Broadly speaking, there are two types of payment terms in Savance Enterprise:
- Relative to the invoice date: Due dates and discount dates are relative to the invoice date. For example, a relative term of Net 30 would require payment 30 days from the invoice date.
- Day-of-the-month-driven: Due dates and discount dates are for specific days of the month. In the day-of-the-month-driven term Net 30 Prox, payment is due on the 30th day of the next month. In Savance Enterprise, the EOM checkboxes on the Term Code tab are used to enable prox due dates.
Payment term abbreviation and punctuation are informal and may vary, but some typical examples are shown below.
|Net 30 days
||Payment is due within 30 days. There is no discount for payment received before then.
|3% 15/Net 90
||Payment is due within 90 days. There is a 3% discount if it is received within 15.
|Net 30 prox
||Payment is due by the 30th of next month.
|2% 10 prox/30 prox
||Payment is due by the 30th of next month. There is a 2% discount if it is received by the 10th of next month.
Configuring Payment Terms
- To view and configure payment terms, navigate to Admin > Administrator on the main menu, then click the Term Code tab.
- To edit a term, select it, click Edit, make changes, and then click Update! to save.
- To give a payment term due dates in the following month, set its type to Day-of-the-month-driven and check the EOM checkboxes for the dates that you want to be in the following month. (Savance Enterprise refers to prox dates as EOM.)
The screenshot below shows a payment term that is due by the 30th of next month, with a discount of 2% if payment is received by the 15th of next month.