Terms Profiles

Terms profiles are sets of defaults that define the trading terms agreed with your suppliers. Separate terms may be agreed for particular supplier groups or can be different for individual suppliers. Terms profiles are used to control various conditions of trading, including:

The definition of a default overall invoice discount applied to transactions created using the Purchase Orders module.

The definition of settlement discount offered by your suppliers to encourage early payment of outstanding invoices.

The definition of the credit terms associated with purchase invoices, specified either in a number of days starting from the invoice date, or a particular day in the first or second month after the invoice date.

The selection of an option that determines whether the goods value on a purchase invoice or credit note includes VAT.

Terms profiles are defined using the Terms Profiles command on the Maintenance submenu. The profiles are then assigned to supplier records using the Trading Terms form displayed when you select the Terms command on the Action menu opened from the Supplier form. You can set up as many trading terms profiles as you want, but you do not have to attach a profile to a supplier record. Instead, you can define a unique set of terms for a supplier by completing the Trading Terms form without selecting a profile.

Examples:
Different suppliers offer your different levels of credit. Some payment terms dictate that invoices must be settled within 30 days of the invoice date, while other suppliers offer you extended payment terms allowing invoices to be settled 60 days from the invoice date. You create two terms profiles for each set of payment terms. When you create supplier records, you select the profile according to which they offer.

One of your suppliers is a special account with unique payment and discount terms. You do not create a terms profile but instead define their terms directly using the Trading Terms form associated with that supplier's record.

Settlement Discounts

Settlement discount is calculated automatically for payments due according to the report available using the Suggested Payments command on the Payments menu. Settlement discount terms can be allocated to supplier records in one of two ways:

By completing the boxes in the Settlement Discount area of the Trading Terms form associated with the Supplier form without using a terms profile.

By completing the boxes in the Settlement Discount area of the Terms Profiles form and then selecting the profile in the Terms Profile list box on the Trading Terms form.

To Define Purchase Terms Profiles

Open the Purchase folder and then click Maintenance or click the Financials tab and then click Purchase - Maintenance on the Ribbon Bar.

Click Terms Profiles.

To create a new record, click the icon on the toolbar or press CTRL+N.

In the boxes provided, enter a code for the terms profile and its details.

To save the record, click the icon on the toolbar or press CTRL+S.

If you subsequently amend a terms profile, the changes you make will not be reflected on the supplier records to which the profile is attached.

Terms Profile Entries

Box	Description
Profile	A unique reference for the purchase terms profile. You can add a corresponding description in the Description box.
O/all. Discount	The amount, expressed as a percentage, of overall discount to be deducted from all purchase transactions for suppliers associated with this profile. The discount is deducted after any line discounts have been taken and applies only to order lines raised using the Purchase Orders module.
D/Charges	An option that determines whether the calculation of settlement discount includes delivery charges. If the option is cleared, the delivery charge specified on an invoice or credit note transaction raised using the Purchase Orders module will be excluded from the amount used to determine the settlement discount entitlement.
Days 1 and Days 2	The number of days that determines the period within which you are entitled to receive a discount on the invoice amount. You can specify two levels of discount according to two different periods. See also Percentage 1 and Percentage 2 below.
Percentage 1 and Percentage 2	The percentage of discount applicable to the corresponding number of days. The second rate and period must not be more favourable than the first.
Due Date Opt	An option that determines how the due date of an invoice is calculated. You can select from a list one of the following options: a number of days from the date of the invoice a specific day in the month following the invoice date a specific day two months from the invoice date. Having selected the option from the list, enter the corresponding number of days or the day number in the Day(s) box to the right of the Due Date Options list. Example: If you want the due date to be set to the last day of the following month, select 'Day of Month Following Invoice' and '31' days. This last day of the following month will then always be suggested when posting an invoice.
VAT Inclusive	An option that determines whether the value of goods on purchase invoice and credit note transactions includes VAT. If the option is selected, VAT is calculated from the amount entered in the Goods Value box and displayed in the VAT Amount box on the Analyse Supplier Invoice form. If the option is cleared, you must enter VAT manually, if applicable. The option applies to invoice and credit note transactions entered using the Processing command in the Purchase module.
Last Modified	The date on which the terms profile record was last updated. You cannot amend this date directly.

Box

Description

Profile

A unique reference for the purchase terms profile. You can add a corresponding description in the Description box.

O/all. Discount

The amount, expressed as a percentage, of overall discount to be deducted from all purchase transactions for suppliers associated with this profile. The discount is deducted after any line discounts have been taken and applies only to order lines raised using the Purchase Orders module.

D/Charges

An option that determines whether the calculation of settlement discount includes delivery charges. If the option is cleared, the delivery charge specified on an invoice or credit note transaction raised using the Purchase Orders module will be excluded from the amount used to determine the settlement discount entitlement.

Days 1 and Days 2

The number of days that determines the period within which you are entitled to receive a discount on the invoice amount. You can specify two levels of discount according to two different periods. See also Percentage 1 and Percentage 2 below.

Percentage 1 and Percentage 2

The percentage of discount applicable to the corresponding number of days. The second rate and period must not be more favourable than the first.

Due Date Opt

An option that determines how the due date of an invoice is calculated.

You can select from a list one of the following options:

a number of days from the date of the invoice
a specific day in the month following the invoice date
a specific day two months from the invoice date.

Having selected the option from the list, enter the corresponding number of days or the day number in the Day(s) box to the right of the Due Date Options list.

Example: If you want the due date to be set to the last day of the following month, select 'Day of Month Following Invoice' and '31' days. This last day of the following month will then always be suggested when posting an invoice.

VAT Inclusive

An option that determines whether the value of goods on purchase invoice and credit note transactions includes VAT. If the option is selected, VAT is calculated from the amount entered in the Goods Value box and displayed in the VAT Amount box on the Analyse Supplier Invoice form. If the option is cleared, you must enter VAT manually, if applicable. The option applies to invoice and credit note transactions entered using the Processing command in the Purchase module.

Last Modified

The date on which the terms profile record was last updated. You cannot amend this date directly.