Menu Code: TER Accounting/Finance->Support,  Receiving->Support,  Purchasing->Support

Payment terms define the conditions of payment for a sale.  At a minimum terms must specify the period granted to the buyer to pay off the sale.  Foura uses terms for Purchase Orders, AP Invoices and Sales Invoices, and allows default terms to be set for each Supplier and Customer.

Foura comes pre-loaded with a wide variety of commonly used terms.  You can add additional terms as needed.

Default Terms

Default terms can be set for each Supplier and Customer.  When creating an AP Invoice, the invoice terms are initially set to the Supplier default terms, but you can then override the terms per individual invoice.  Similarly, when creating a Sales Invoice, the terms are initially set to the Customer default terms.

In addition, you can set the Def_Term Global Variable to the terms that you want to assign by default to new Suppliers, and you can set the Def_TermAR global variable to the default terms for new Customers.

Early Pay Discount

Terms can optionally include an early-pay discount, which offers the buyer savings if they pay the bill in full within the specified number of days.  To specify an early pay discount set the Discount Days (Disc Days) to the number of days for which the discount will be offerred and set the Discount Percentage (Disc %) to the percentage to deduct from the sale amount.  The Discount Days should always be less than the Due Days.

For example, if you negotiated Net 30 terms with a Supplier that included a 2% discount if you paid within 15 days then you would set Due Days to 30, Discount Days to 15 and Discount Percent to 2%.  If you were to purchase $1000 of goods under these terms and paid within 15 days then you would receive a $20 discount and would only need to pay $980.  Foura will automatically calculate the discount to apply during the Pay Invoices (Print Checks) process.

Purchases Paid With Credit Cards

You can use the pre-defined CC (Credit Card) terms for Suppliers, Purchase Orders, or AP Invoices that you intend to pay for using a credit card.  The CC payment terms are configured to require that a credit card supplier be entered on any Purchase Order or AP Invoice using these terms.  If you want to add additional terms for credit card purchases then make sure to check the ReqCC box for these new terms. 

Columns

Security