21/12/2016

PaymentTerms(OracleReceivablesHelp)

PaymentTerms
Receivablesletsyoudefinestandardpaymenttermsforyourcustomerstospecifytheduedateanddiscountdatefortheir
openitems.Paymenttermscanincludeadiscountpercentforearlypaymentandyoucanassignmultiplediscountstoeach
paymenttermline.Forexample,thepaymentterm'2%10,Net30'indicatesthatacustomerisallowedatwopercent
discountifpaymentisreceivedwithin10daysafter10days,theentirebalanceisduewithin30daysofthetransactiondate
withnoapplicablediscount.Youcandefineproximapaymenttermstopayregularexpensessuchastelephonebillsand
creditcardbillsthatoccuronthesamedayeachmonth.Youcanalsocreatesplitpaymenttermsforinvoiceinstallments
thathavedifferentduedates.
Youcanusepaymenttermstodeterminetheamountofeachinstallment.Receivablesletsyoueitherdistributetaxand
freightchargesacrossallinstallments,orallocateallfreightandtaxamountsinthefirstinstallmentofasplitterminvoice.
Youcanuseprepaymentpaymenttermstoindicatewhichbusinesstransactionsrequireprepaymentforgoodsandservices.
ReceivablesdisplaystheactivepaymenttermsyoudefineaslistofvalueschoicesintheCustomers,CustomerProfile
Classes,andTransactionswindows.
Note:IfyouhaveMultiLingualSupport(MLS),youcandefinepaymenttermsineachofyourinstalled
languages.Toentertranslations,selectTranslationsfromtheViewmenuorclickontheglobeicon.Formore
information,see:OracleApplicationsConceptsortheOracleApplicationsUserGuide.
DefaultPaymentTermsHierarchy
Receivablesusesthefollowinghierarchytodeterminethedefaultpaymenttermforyourtransactions,stoppingwhenoneis
found:
1.Billtosite
2.CustomerAddress
3.Customer
4.TransactionType
PredefinedPaymentTerms
Receivablesprovidesthefollowingpredefinedpaymentterms:
30NET:Thebalanceofthetransactionisduewithin30days.
IMMEDIATE:Thebalanceofthetransactionisdueimmediately(i.e.onthetransactiondate).Youcanusethis
paymenttermwithyourchargebacksanddebitmemos.
Todefineapaymentterm:
1.NavigatetothePaymentTermswindow.
2.EntertheNameofthispaymentterm.
3.SelectthePrepaymentcheckboxifyouaredefiningaprepaymentpaymentterm.
Receivablesfeedersystems,suchasOracleOrderManagement,canoptionallyimplementbusinessprocesses
aroundprepaymentpaymenttermstoindicatethataparticularbusinesstransactionrequiresthecaptureoffunds
beforethedeliveryofaproductorservice.
See:ManagingPrepaymentReceipts.
4.Toassociateacreditcheckwiththispaymentterm,checktheCreditCheckbox.OracleOrderManagementuses
thisinformationtodeterminewhentoplaceanorderonhold.
InOracleOrderManagement,iftheprofileforanaddressdoesnothavecreditcheckinglimitsdefinedinaparticular
currencybutthecustomerdoes,thentheorderpassescreditcheck.Iftheaddressdoesnothavelimitsinthe
currencyandneitherdoesthecustomer,thentheorderiscomparedtothecustomerlimitinthatcurrency.

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21/12/2016

PaymentTerms(OracleReceivablesHelp)

5.Ifyoudonotwanttoletyourcustomerstakediscountsforpartialpaymentsonitemsassociatedwiththispayment
term,thenuncheckboththeAllowDiscountonPartialPaymentscheckboxaswellasthecheckboxfortheDiscount
onPartialPaymentsystemoption.
6.EntertheInstallmentOptionforitemsassignedtothispaymentterm.ThisindicateshowReceivableswillallocate
thefreightandtaxchargedtotransactionsusingthispaymentterm.Choose'Includetaxandfreightinfirst
installment'toincludealltaxandfreightchargesinthefirstinstallment.Choose'Allocatetaxandfreight'todistribute
taxandfreightchargesacrossallinstallments.
7.EntertheBaseAmountforthispaymentterm.Thedefaultis100,butyoucanchangeit.Thebaseamountisthe
denominatorfortheratioReceivablesusestodeterminetheamountdueforinstallmentsofinvoicestowhichyou
assignthispaymentterm.Thesumoftherelativeamountsforallofthepaymentschedulesthatyoudefineforthese
paymenttermsmustbeequaltothevaluethatyouspecifyasabaseamount.See:PaymentTermsFieldReference.
8.Ifthispaymenttermusesproximaterms,enteraCutoffDayforinclusioninthemonthlybillingcycle.Youcan
eitherenteraDayoftheMonthorselecttheLastDayofMonthcheckbox.SelecttheLastDayofMonthcheckbox
tocreateapaymenttermtousewithaconsolidatedbillinginvoicethatincludesalltransactionscreatedduringthe
monththatyouspecify.
IfyouareusingtheConsolidatedBillingInvoicesprogram,thenyoumustentervaluesfortheDayofMonthand
MonthsAheadfieldsintheDueregionofthePaymentSchedule.ConsolidatedBillingdoesnotusetheDaysorDate
fieldsintheDueregion.
CustomerswhousepaymenttermswherethevaluefortheCutoffDayisgreaterthanthevalueintheDue:Dayof
Monthfieldshouldnotenteravalueof0intheMonthsAheadfield.Thiswillresultinthefollowingerroneous
scenario:
CutoffDay=25
DayoftheMonth=15
MonthsAhead=0
Inthisexample,aconsolidatedbillinginvoicethatiscreatedonJanuary25willbeduebeforeitscreationdateon
January15.Toavoidthisscenario,youmustenteravaluethatisgreaterthan0intheMonthsAheadfield.
9.Ifyouwanttransactionsassignedtothispaymenttermtobeprintedbeforetheduedate,enteranumberofPrint
LeadDays.Receivableswillprintthistransactionxnumberofdaysbeforetheduedate,wherexisthenumberof
daysyouenterhere.
10.EntertheDiscountBasisyouwantReceivablestousewhencalculatingdiscountsforyourinvoices.Chooseone
ofthefollowingdiscountmethods:
InvoiceAmount:Choosethisoptiontocalculatethediscountamountbasedonthesumofthetax,freightcharges,
andlineamountsofyourinvoices.
LinesOnly:Choosethisoptiontocalculatethediscountamountbasedononlythelineamountsofyourinvoices.
Lines,FreightItemsandTax:Choosethisoptiontocalculatethediscountamountbasedontheamountofline
items,freight,andtaxofyourinvoices,butnotfreightandchargesattheinvoiceheaderlevel.
LinesandTax,notFreightItemsandTax:Choosethisoptiontocalculatethediscountamountbasedontheline
itemsandtheirtaxamounts,butnotthefreightitemsandtheirtaxlines,ofyourinvoices.
11.EnterarangeofEffectiveDatesforthispaymentterm.Ifyoudonotenteranenddate,thispaymenttermwillbe
activeindefinitely.
12.Enteralinenumberfortheinstallmenttermthatyouaredefininginthe'Seq'field.Enterahighernumberforeach
installmenttermwithalaterduedate.Forexample,ifyoucreatetermswith50%duein15daysand50%in30days,
enter'1'inthisfieldforthefirstlineand'2'forthesecondline.
13.EntertheRelativeAmountforthispaymentterm.ThisisthenumeratoroftheratiothatReceivablesusesto
determinetheamountdueforthisinstallmentofthesepaymentterms.Thesumoftherelativeamountsforallofthe
paymentschedulesthatyoudefineforeachpaymenttermmustbeequaltothebaseamountforthisterm.
14.EnterthenumberofDaysaftertheinvoicedatethatpaymentisdueforthisinstallmentterm(optional).Forsplit
paymentterms,thisnumberindicatesthenumberofdaysaftertheinvoicedatethataninstallmentisdue.
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PaymentTerms(OracleReceivablesHelp)

15.EntertheDateonwhichpaymentisdueforthisinstallmentterm(optional).Ifyoudonotcompletethisfield,enter
avalueforeitherDueDaysorbothDayofMonthandMonthsAhead.
16.Ifyouaredefiningproximaterms,entertheDayofMonththatpaymentisdueforthisinstallmentterm.For
example,ifpaymentisdueonthefifteenthofeachmonth,enter'15.'
17.IfyouaredefiningproximatermsandyouenteredavalueforDayofMonth,entertheMonthsAheadtowhichthis
installmenttermoftheproximatermsrefer.Forexample,ifyouentered'15'forDayofMonthandyouenter'2'here,
aninvoicedatedinMaywillhaveaduedateofJuly15.
18.Saveyourwork.Toassigndiscountstoeachpaymentschedulelineofyourpaymentterm,see:Entering
DiscountInformation.

EnteringDiscountInformation
Receivablesletsyouassigndiscountstoyourpaymentterms.Youcanalsoassignmultiplediscountlinetermstoeach
installmentofyourpaymentterms.Forexample,youmightgiveyourcustomera10%discountiftheypaywithin10days,
butonlya5%discountiftheypay11to20daysaftertheinvoicedate.
DiscountsdonotapplytoAutomaticReceipts.IfyouusetheautomaticreceiptsfeaturetocreateyourBillsofExchange
andDirectDebits,Receivableswillnotcalculatediscounts,evenifyourcustomerspaybeforetheduedate.
Prerequisites
Definepaymentterms
Toassigndiscountinformationtoapaymentterm:
1.NavigatetothePaymentTermswindow.
2.Queryorenterthepaymentterm.
3.ChooseDiscounts.
4.EnterthediscountpercentageandnumberofDaysforthispaymentterm.Forexample,togivecustomersusing
thispaymenttermatwopercentdiscountifpaymentisreceivedwithintendays,enter'2'and'10'respectively.
5.Tolimittheperiodoftimethatthediscountforthisinstallment'sdiscountlinewillbeactive,entertheDate,dayof
theMonth,andthenumberofMonthsAheadforthisdiscount'sexpirationdate.Receivablesusesthesevaluesto
calculatethediscountdateduringinvoiceentry.
6.Saveyourwork.

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