HI Guru's
Any one can give the Payment terms available in AP and AR
and one more Doubt is the payment term is based on the Due date, can u folks e plain me clearly
Payment Terms in AR & AP
Payment Terms in AP & AR different.
While defining Payment Term in AP, we define in how many days the payment has to be made to the supplier. After defining the Payment Term, the same will be attached to the Supplier.
Vice Versa in AR. That is, after rendering the service / stock, in how many days, the payment from Customer has to be received is the Payment Term in AR.
Payment Term on Due Date means:
In AP, we may make the payment to the Supplier on Due Date or if you have surplus funds in your Bank, you can make immediately. But, in general concept, if we make payment before due date, we will get some discount. That also we can define in the Payment Terms in AP. So, while picking the Payment, whether Applications should pick the invoices that are due on due date or Invoices due that are for Discount. If you say Payment Terms as on Due Date, system picks Invoices that are due on Date. If you say, Invoice due on Discount Date, system picks up those invoice for which Discount we can earn.
Is It OK ?
Upendra Donepudi
While defining Payment Term in AP, we define in how many days the payment has to be made to the supplier. After defining the Payment Term, the same will be attached to the Supplier.
Vice Versa in AR. That is, after rendering the service / stock, in how many days, the payment from Customer has to be received is the Payment Term in AR.
Payment Term on Due Date means:
In AP, we may make the payment to the Supplier on Due Date or if you have surplus funds in your Bank, you can make immediately. But, in general concept, if we make payment before due date, we will get some discount. That also we can define in the Payment Terms in AP. So, while picking the Payment, whether Applications should pick the invoices that are due on due date or Invoices due that are for Discount. If you say Payment Terms as on Due Date, system picks Invoices that are due on Date. If you say, Invoice due on Discount Date, system picks up those invoice for which Discount we can earn.
Is It OK ?
Upendra Donepudi
Dear Friend
There are no different payment terms. Payment Term is one type. Under Payment Terms, you can create no. of payment terms.
The Navigation is Setup / Invoice / Payment Terms
In this you can create Payment terms viz., 30 days, 60 days, immediate or with multiple instalments, You can opt for Discount if paid with in particular days etc.,
Distribution Set is used in Payables module. It is nothing but naming an account code combination.
For Example, If you have to select an account code combination like. 01-000-5124 for Travel Expenses, initially, you can define this code combination as a Distribution Set.
The navigation is Setup / Invoice / Distribution Set.
While entering the Invoices in Payables module and Purchase Module, by selecting this Distribution Set from List of Values, you can charge the expenses to Travel Expenses. One more use of Distribution Set is, While creating Supplier, at Site level, you can select this Distribution Set. So, while entering Invoice against that particular supplier, you need not enter Account Code comibination in Distribution window. System automatically picks up the code comibination. The same it is used in Purchase module also. While generating PO, they will select the distribution Set.
Anything else
Upendra Donepudi
There are no different payment terms. Payment Term is one type. Under Payment Terms, you can create no. of payment terms.
The Navigation is Setup / Invoice / Payment Terms
In this you can create Payment terms viz., 30 days, 60 days, immediate or with multiple instalments, You can opt for Discount if paid with in particular days etc.,
Distribution Set is used in Payables module. It is nothing but naming an account code combination.
For Example, If you have to select an account code combination like. 01-000-5124 for Travel Expenses, initially, you can define this code combination as a Distribution Set.
The navigation is Setup / Invoice / Distribution Set.
While entering the Invoices in Payables module and Purchase Module, by selecting this Distribution Set from List of Values, you can charge the expenses to Travel Expenses. One more use of Distribution Set is, While creating Supplier, at Site level, you can select this Distribution Set. So, while entering Invoice against that particular supplier, you need not enter Account Code comibination in Distribution window. System automatically picks up the code comibination. The same it is used in Purchase module also. While generating PO, they will select the distribution Set.
Anything else
Upendra Donepudi
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