Payment Term

Enhancement 1 

In this release, system provides new feature payment term after specific days with ‘Fix Month Cutoff’ and ‘Fix Month Offset’ 

Earlier, ‘Fix Month Offset’ and ‘Fix Month Cutoff’ used to display once ‘Fixed Due Date’ checkbox set true. Now these field will be display even this checkbox is false. 

Payment Term Without Schedule 

‘Fix Month Cutoff’ and “Fix Month Offset” fields are used for the calculation of billing cycle. How to use these filed for calculation explained below 

For the calculation of Due Date, system will first calculate Start Date and then calculate Due Date. 

Start Date always be 1^ST day of month and month will be calculated by the system according to defined ‘Fix Month Cutoff’ and “Fix Month Offset”. 

For Example:  

Case A 

In the above example, Invoice date is less than ‘Fix Month Cutoff’. So for the calculation of Start Date, Invoice Month will become base month and  ‘Fix Month Offset’ is one.  

Start Date = May 01, 2019 [1^st day of (Invoice month + Fix Month Offset)]  

Now for the calculation of Due Date System will add Net Days to the Start Date. 

Hence, due date will be (May 01, 2019 + 90 days ) = July 30, 2019 

Case B 

In the above example, Invoice date is greater than ‘Fix Month Cutoff’ then consider invoice next month as a base for calculation of Start Date. 

so Start date is [ 1^st day of (Invoice date next month is, May + Fix month offset )] = June 01, 2019 

and Due Date is June 01, 2019 + Net days (90) = Aug 30, 2019.  
 

Open

If  Fix Month Offset’ and ‘Fix Month Cutoff’ has value 0 then system will simply add ‘Net Days’ to invoice date. For example:

In above example, invoice created on April 04, 2019 and add ‘Net Days’ to invoice date. Invoice due date would be July 03, 2019 

Open

In case Invoice Invoice Date is equal to ‘Fix Month Cutoff’ then system will work according to Case A. 

Below are the few example of payment terms without schedule 

Payment terms with Schedule  

When there is payment term having multiple schedule, system will pick  ‘Fix Month Offset’ and ‘Fix Month CutOff’ from header and net days would be picked from schedule tab. 

‘Fix Month Offset’ and ‘Fix Month CutOff’ do not work for advance schedule. Either full advance or partial advance. 

Below are the few example of payment terms with schedule 

 Enhancement 2 

In this release, VA System provides new feature payment term i.e., AdHoc and Week day Payment Term within the VA System.   

AdHoc Payment Term- User can enter invoice due date manually irrespective of using pre-defined payment terms.  

In AR Invoice/AP Invoice header ‘Due Date’ field is available, where user can enter invoice due date manually. If Due Date is manually entered on invoice header, then the system creates only one payment schedule based on entered due date. If Due Date is null then system creates payment schedule(s) based on the selected Payment Term.  System gives preference to the manually entered due date instead of selected payment term. 

Week day Payment Term- User can set due date on particular day of week. 

Enable ‘Net Day’ field and Rename ‘Net day’ to ‘Week Day’. 

Create new field ‘Week offset’ in Payment Term header and It should display, When the value is entered in Week Day. The Week offset indicates the number of weeks from the current week to indicate an invoice is due. 0 indicates the same week, 1 indicates the following week. 

The functionality of ‘Week Day’ and ‘Week Offset’ on completion of AP Invoice and AR Invoice: 

 “Week Day” and “Week offset” fields are used for the calculation of the billing cycle. How to use these filed for calculation explained below  

For the calculation of Due Date, system will first calculate Calculated Date and then calculate Due Date. 

The functionality of ‘Week Day’ and ‘Week Offset’ is explained below and determined in the following cases: 

Case A 

On Payment Term, Friday is selected on week day. 

Calculated Date= [Invoice date + Net days] 

                = Oct 01, 2020 (Thursday) + 0 

                = Oct 01, 2020 (Thursday)   

Due Date= [Friday after Calculated date + Week Offset)]   
                     Oct 02, 2020 + 0 week 

        Oct 02, 2020  

Case B 

Week day as Friday, week offset as 1 and Net day as 0 are selected on Payment Term. 

Calculated Date= [Invoice date + Net days] 

                = Oct 01, 2020 (Thursday) + 0 

                = Oct 01, 2020 (Thursday)   

Due Date= [Friday after Calculated date + Week Offset)]   
                     Oct 02, 2020 + 1 week 

        Oct 09, 2020  

Case C 

Week day as Friday, week offset as 0 and Net day as 14 are selected on Payment Term. 

Calculated Date = [Invoice date + Net days] 

                 = Oct 01, 2020 (Thursday) + 14 

                 = Oct 15, 2020 (Thursday) 

Due Date= [Friday after Calculated date + Fix Month Offset)]   

        Oct 16, 2020 + 0 week 

        Oct 16, 2020  

Case D 

Week day as Friday, week offset as 1 and Net day as 14 are selected on Payment Term. 

 Calculated Date = [Invoice date + Net days] 

                 = Oct 01, 2020 (Thursday) + 14 

                 = Oct 15, 2020 (Thursday) 

Due Date= [Friday after Calculated date + Fix Month Offset)]   

        Oct 16, 2020 + 1 week 

        Oct 23, 2020  

Case E 

Invoice date and Week day is Friday, week offset as 1 and Net day as 0 are selected on Payment Term. 

Calculated Date= [Invoice date + Net days] 

                = Oct 02, 2020 (Friday) + 0 

                = Oct 02, 2020 (Friday)   

Due Date= [Friday after Calculated date + Week Offset)]   
                     Oct 09, 2020 + 1 week 

        Oct 16, 2020  

Note: In case if Invoice Date day and ‘Week day’ is same then system will work according to Case E.  

Imp Points: 

1. Week Offset should display, When the value is entered in Week Day. 

2. When advance checkbox is true weekday should be blank and read only 

3. When fix due date checkbox is true weekday should be blank and hide. 

4. If week day is selected, system should disable schedule tab 

5. Fix Month Cutoff and Fix Month Offset should hide, When the value is entered in Week Day. 

6. If schedule lines are present and user select week day then system give error message.