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How to: Set Up Payment Terms

You use payment terms in purchase invoicing and sales invoicing to manage due dates and to calculate possible payment discounts.

You can set up any number of payment term codes and use date formulas to define the payment terms.

To set up payment terms

  1. In the Search box, enter Payment Terms, and then choose the related link.

  2. On the Home tab, in the New group, choose New.

  3. On each line, fill in the various fields.

After you set up the payment terms, you assign them to customers and vendors.

When you post an invoice, Microsoft Dynamics NAV calculates the payment discounts. The payment discount date, that is, the latest date on which the customer can pay and receive a discount on the payment, will also be calculated at that time.

When you post a credit memo, Microsoft Dynamics NAV calculates possible payment discounts. The discount on credit memos is calculated according to the same principles as payment discounts on invoices. Where a credit memo is applied to an invoice, the possible payment discount amount for the invoice will be reduced by the payment discount amount for the credit memo.

See Also

Tasks

How to: Determine Base Amounts for Payment Discounts on Sales
How to: Revert VAT on Payment Discounts