Terms Code File Maintenance, on the Accounts Payable Set-up (SEP) menu, is used to create and maintain terms codes which calculate the invoice due date and aging for both accounts payable and accounts receivables throughout the system.

When you select this option the following prompt appears:

1.  Standard File Maintenance

2.  File Maintenance within Limits

3.  Print Terminal Image

Select option, Standard File Maintenance.

The information below discusses both Accounts Payable and Accounts Receivable because Terms Codes Maintenance appears under two menus, Accounts Receivable Setup and Accounts Payable Setup.

Pressing F2 displays the current terms codes on file.  Using your cursor keys, highlight the code you want to view or maintain and press [ENTER].

"Terms" is the method of arranging payments of an obligation.  Terms codes are assigned in the Supplier Master File Creation Default option and the Customer Master File Creation Default option to calculate appropriate due dates and determines the age of invoices.

Creating Terms Codes

To create a new terms code, enter the alpha-numeric character, 1 character being the maximum accepted.  The program prompts, "Add new record (Y/N) Y."  Respond Y to create a new code.  The character entered is the code that needs to be assigned in both the Supplier and the Customer Master File Creation Defaults and modified in Supplier Master File M=More Screen or Customer Master File M=More Screen or in Order Entry to change the terms on a specific order.

Terms Discount Percent

Enter the discount percent if applicable.  This percentage calculates the discount amount to be taken if eligible.  Discounts are controlled in Accounts Payable Payment Selection, when performing a check run.

Terms Discount Period

Enter the number of days in which the balance is due.

Optional Message

Enter the description which prints on the customer's invoice.  For example, Specialty Advertising Co. extends terms for their customer base at Net 30.  A handful of Suppliers offer terms at 1/10 Net 30.

How to Use Terms Codes

Example:   Specialty Advertising Co.'s entire customer base is set up for Net 30 terms (Terms Code 3).  In order for all invoices to reflect these terms, Terms Code 3 (Net 30) would be entered in Customer Master File Creation Defaults, since their entire customer base would fall under this category (Quikey Computer Systems sets these terms).  However, supplier terms vary with each supplier invoice depending on the terms that they set.

Under the Supplier Master File Creation Defaults the terms code entered would be the terms that encompasses the majority or a large percentage of their suppliers such as Net 30.  Subsequently, each time a new supplier is entered the terms can be modified independently to reflect the new terms such as 1/10 Net 30 or Net 15.

NOTE:   The Suppliers that are provided with the system need the terms verified to reflect your relationship.