Working with Payment Terms in Business Central
In this video, UG Expert Dave Wiser explains payment terms in Business Central, which give users the ability to calculate the due date on sales and purchase invoices. Dave reviews how payment terms are used and how date formulas are used to calculate specific due dates.
Key Takeaways
- Overview: The Payment Terms table is a system table used to calculate due dates and discount due dates for sales and purchase invoices, as well as credit memos. It is shared by both sales and purchasing, and the payment terms code assigned to customers or vendors can be overwritten on specific sales or purchase documents.
- Due date: A vendor’s payment terms can be overridden at the document level for specific invoices, and the due date is calculated based on the document date, not the posting date. Generally, the posting date and document date are the same, but it’s important to note the distinction for accurate due date calculations.
- Overview of codes: The codes in the Payment Terms table describe the payment terms and include date calculations using numbers and date formulas. For example, “10D” means the due date is 10 days from today, while “D10” means the 10th day of the month, and “CM” stands for the current month or the end of a particular month.
- Calculations: The “CM + 10D” calculation sets the due date to the end of the current month plus 10 days. Additionally, discount date calculations can be used with discount percentages, such as offering a 2% discount if paid within eight days, with the final invoice due in one month. The description column provides more details, and there’s an option to calculate payment discounts on credit memos, though it’s usually off.
- Due date calculations: The due date on a sales order is calculated based on the document date and the payment terms code, which can be overridden manually. If the payment terms code is changed, the due date will be recalculated, requiring manual adjustment if it was previously set manually.
