Terms Codes

Terms codes are used to designate the payment terms your customers will remit payments to you as well as the payment terms you will observe to your vendors.

Terms Code Maintenance form is found under the lookup section in the profile bar.

The terms codes must be synchronized to the terms codes found in your accounting system. Most accounting systems have separate areas for receivable and payable terms while Seradex stores both in the same place. Not every accounting system supports all the payment options that Seradex does and not all accounting systems support the length f codes and description that Seradex does.

Field Name

Function

Example

Terms Code

8 Character Text Code

N30

Description

75 Character Description

Net 30 Days

Term Code Type

Is used to determine the start date of the number of days. The choices include:

•	Days from Invoice Date – if invoices are due in a specific number of days from the invoice date

•	End of Next Month – if invoices are due on the last day of next month

•	Day of Next Month – if invoices are due on a specific day of next month. So if the invoices are due on the 15th – enter 15 in the Due Day of Month field

•	Day of Month – if invoices are in a specific day of current month

•	Days from Day of Next Month – if invoices are due a set number of days after a specific day in the next month i.e. Invoices are due 30 days after the 15th of next month

Discount Terms Type

Is used to determine the start date of the number of days. The choices include:

•	Days from Invoice Date – if invoices are due in a specific number of days from the invoice date

•	End of Next Month – if invoices are due on the last day of next month

•	Day of Next Month – if invoices are due on a specific day of next month. So if the invoices are due on the 15th – enter 15 in the Due Day of Month field

•	Day of Month – if invoices are in a specific day of current month

•	Days from Day of Next Month – if invoices are due a set number of days after a specific day in the next month i.e. Invoices are due 30 days after the 15th of next month

Number of Days

Number of days before payment is required – from term code type e.g. invoice date

Discount Pct

The allowable discount percentage if the payment is received before the Discount Days

Discount Days

Number of days from Invoice Date when early payment discount is valid

Due Date Day of Month

If the Terms Code Type references a day of month enter the specific day of the month in this field

Discount Day of Month

Early payment discount is allowed is paid before this specific day of the month

Deposit Percent

The amount of deposit due with this invoice i.e. 10%

Term Module

Is this term code available to just AR, just AP or both modules

Terms Code Sample

Select a date and the system will calculate a Due Date and Discount Date using the Terms Code logic you have entered for this terms code

AR - Accounts Receivable

The customer elects to take an early payment discount.

If Invoice is $100 & customer pays $98
                 Bank      $98
   Discount taken      $ 2
                Cr AR     $100

AP - Accounts Payable

You elect to take an early payment discount when paying your vendor.

If Invoice is $100 and you pay $98

AP $100
Cr Bank $ 98

Discount Taken $ 2

TM - Both AR and AP

Both an accounts receivable and an accounts payable transactions are going on at once.