Terms are used to calculate the due date, discount date, and discount rate for customer and vendor invoices. The way in which these values are calculated depends on the type and applicable settings of the term.

Due Date Calculation

Standard

The due date will be calculated by adding the value in "Due in Days" to the invoice date. For example, if the invoice has an invoice date of March 19th, and the terms state that the invoice payment is due in 30 days, the invoice due date will be calculated as April 18th.

Cash on Delivery, Cash in Advance, and Credit Card

The due date will be calculated in the same way that it is calculated for standard terms. While the system will not prevent you from entering a value in "Due in Days" that is greater than zero, zero is probably the only correct value to use. However, all of these term types will actually require a payment prior to goods being received.

Sales Orders with Cash in Advance and Credit Card terms will be placed on hold until a payment is entered and will therefore be prevented from being shipped until a payment is received.

Sales Order with Cash on Delivery terms will not be placed on hold and will be allowed to be shipped without an upfront payment. However, as the name implies, the customer will have to pay for the shipment at the time of receipt. If the customer cannot or does not pay, the goods will be returned to your company. Many shipping companies offer this service and all are similar to, if not identical to, the way UPS handles it. Please see this article on the UPS site for more details: https://www.ups.com/us/en/shipping/services/value-added/cod.page

Manual

Manual terms are not calculated by the system. When using manual terms, the system will just set the due date to the same date as the invoice date. It will be up to the user to manually set the invoice date in this case, if another date is desired.

Proximo

Proximo terms use more parameters in the calculation than standard terms. There are two additional values in the terms record that assist in this calculation: "Proximo First Day" and "Proximo Last Day." Additionally, the field labeled "Due in Days" has a slightly different meaning. In the case of proximo terms, this value is actually the day of the month on which the full payment is due.

When the day portion of the invoice date falls between the "First Day" and "Last Day"  values, the invoice will be due on the "Due in Days" value in the following month. When the day portion of the invoice date does not fall between these two values, the same calculation is used, but is pushed out by two months instead of just one.

For example, assume that "Proximo First Day" is set to 1, "Proximo Last Day" is set to 15, and "Due in Days" set to 5.

Assume an invoice date of March 8. Since the 8th falls between the 1st and the 15th, the due date will be the fifth day of the following month. This gives a due date of April 5th.

Assume an invoice date of March 19. Since the 19th is not between the 1st and the 15th, the due date will be the fifth day of the second following month. This gives a due date of May 5th.

Discount Date Calculation

Standard

The discount date will be calculated by adding the value in "Discount for Days" to the invoice date. For example, if you ship a sales order to your customer on March 19th, and the terms state that the invoice payment is discounted for 10 days, the invoice discount date will be calculated as March 29th.

Cash on Delivery, Cash in Advance, Credit Card, and Manual

In all of these cases, the system will not calculate a discount date. The date will merely be set to the same date as the invoice date.

Proximo

Using our previous examples from the due date calculations, discount dates are calculated in the same manner but use the "Discount for Days" value in place of the "Due in Days" value.