--- title: "Payment Terms & Installments" canonical: "https://wiki.soft1.eu/space/SS5EN/12058657/Payment%20Terms%20%26%20Installments" format: markdown --- ## Configuration  ### Determination of available payment methods  The payment methods available during documents posting are defined in Parameters - Financials - Payment methods. In the constant data of each trading party, it is possible to define the specific payment method to be proposed automatically, each time the trading party is selected in the document.  **Cash:** if the payment method concerns strictly cash, it is not necessary to enter any additional information, other than the code, abbreviation, name and the account (or part) to be used during accountings updates. Parameter must indicate "None". **Payment terms:** During determination of the payment methods concerning credited payments, it is necessary to define the fields based on which the payment method is to be proposed for the value to be settled indicated on the document.    #### **Equal amounting installments** If the payment terms refers to a payment in equal amounting installments, it is necessary to complete the fields on the left part of the display, namely: -The beginning date for the calculation of the settlement. -The number of equal amounting installments (i.e. 12). -The installment calculation step - there must be selection of the grouping that corresponds to the payment terms (i.e.12 months). -Whether rounding is to be performed on the first or last installment -Whether the V.A.T. amount is to be included in the first installment, or allocated equally to the installments. -The type of the charge that shall correspond to eventual interest expenses. Only the charges with the description in are available. #### **Non-equal amounting installments** In this case, the payment terms data are completed in the respective table as follows: The second column contains the percentage of the value to be covered, while first column contains the number of days required for the coverage of this specific percentage. > Info: In both cases above it is necessary to define the method of calculation of the payment terms in the document, during selection of the payment method, through adequate setting of parameter . #### **Different payment terms per document ** In the payment method, you can select the generation of different payment terms per document, based on one of the following data (lines):  Commercial category, Accounting category, Group of items, Manufacturer, Favorite supplier, Business unit, Project, Season.  > Info: Option "From line days" requires the document columns to include field Payment days. Values grouping shall be performed based on these days and not in any other automated way.    If any of the above methods is selected, the grid for payment terms registration is displayed:      **Grid data are completed as follows: ** **[Value]** Select the value to be set in the payment terms. It can be Payable, Net payable, VAT value. This option covers the cases requiring different payment terms for net value and VAT value. It is obvious that for each grouping value there must be creation of up to 2 analysis lines, either 1 net payable line and 1 VAT line, or 1 payable line. **[Grouping]** Depending on the selection in the [Calculation method], select the values of the grouping element (that is, if this is a grouping per item group, then there shall be display of the values of the respective table) **[Report date]** Defines the date to be used as the basis for the calculation of the beginning dates of the payment terms  **[Begin date]** Using the time scheduling wizard displayed, define the beginning date of the payment terms I.e. selecting Daily and after 0 days, the reference date shall also be set as the beginning date of the payment terms. **[Steps]** Using the time scheduling wizard, define the recurrence of the installments (respectively to the installments calculation step in previous versions), i.e. on the first day of each month  **[End date]** This specific parameter is filled in only in specific cases, i.e. assuming that an installment ends on a non-business day, the end date can be set here.      ### Creation of virtual cheques during document pay-off  In order to ensure complete monitoring of documents pay-off using payment terms, the application integrates a mechanism for the automatic generation of "virtual" cheques.   To activate this mechanism, perform the following actions: -In zone , activate parameter .  -In parameter, set the transaction on the pay-off document line, as per which the cheques are to be created. -Complete the necessary fields for the creation of the cheques, such as , & .   In order for the mechanism to function during documents posting, the following must also apply: The document line must have the descriptions either , or in The pay-off document type must support the cheques transaction selected during the design of the payment method.     ## Operation  Immediately after document posting from Related jobs - Payment terms, there is display of the data (installments amount, payment end date, etc.) that are proposed based on the selected payment method; these may be modified by the operator.   Additionally, in case the mechanism for the payment through "virtual" cheques is activated, document posting shall result in the registration of a settlement document, the lines of which shall contain the installments, in the form of cheques and with end date the anticipated date of installment payment.   If the mechanism is not used, then the payment terms data are used for information provided through the print out in the respective documents module. ## **Settlement example** --- Suppose you want to create a payment method including: - For the payable amount of the items of Group 1, 5-month arrangement with each installment be payable every 1 month. - For the payment of the items of Group 2, 10-month arrangement with installment be payable on Friday of  every 4th week.   Details of the settlement are: The invoice:  The result: <\p>