Vendors - Payment and Terms Tab

Access this tab using Maintain > Vendors.

Use this tab to specify various information about the payment and terms for this vendor. You can specify a Hold Payments status for this vendor, have the system Print Separate Checks for Each Invoice, indicate a Check Stub Comment for checks written to this vendor, and record the appropriate Discount Rates.

 

Payment Information: Use this group box to set up payment information for the designated vendor. If the Electronic Funds Transfer for A/P module is installed, additional information for electronic payments can be set up.

• Hold Payments: Select this check box to hold payments to this vendor. That is, you do not want the system to produce checks for this vendor. A warning message displays when entering a manual A/P check to a vendor on hold, but you can still proceed.
• Check Stub Comment: Enter any information to appear on the check stub comment portion of the check. For example, you may want to enter the customer number this vendor has assigned to your organization. If you want the account number (from the Vendor tab) to display when printing checks (Activities>Check Writing>Write Checks), enter %ACCT% in this box. The system will then print the appropriate account number for you.

Discount Rates and Availability: Use this group box to enter the vendor's discount rates and the number of days that the discounts are available.

• First Discount, Days Available, Second Discount, Days Available: Enter the vendor's discount percentage followed by the number of days that the discount is available. Two discount intervals can be set up, such as a 2 percent discount if paid within 10 days, and a 1 percent discount if paid within 20 days. The system determines if discounts apply when checks are selected for payment.
  When entering percentages in the system, do not include a decimal point. For fractional percentages, you must enter the leading zeroes. For example, enter the following numbers to indicate the percentages:
  00005 = .5%
  005, 05, or 5 = 5%
  50 = 50%
• Days Until Net Amount Due: After specifying the discount percents and the days available, enter the number of days until invoices are due to this vendor. For example, if the vendor's payment terms are Net 30, enter 30 in this box. When entering an invoice, the system uses this number and the invoice date to calculate the due date for the invoice. This calculated date appears as the default due date for the invoice. If you do not enter a response, the system assumes the number of days is 30. And if you leave this field blank, the system assumes that invoices are due immediately.

By flagging a vendor with "Hold Payments" status, this vendor is no longer eligible to receive system-generated checks.