1. Go to the Setup menu and choose Linked Accounts.
2. To set up customer terms, choose Sales Accounts. To set up supplier terms, choose Purchases Accounts.
3. Click Terms. The Credit Terms window is displayed. Depending on your software version some of the fields may vary from those displayed in the example shown below.
   
4. Define the credit terms based on the following field descriptions: Payment is due: this menu allows you to choose from a variety of options:
   
   • COD (as shown)
   • Prepaid
   • In a given number of days
   • On a day of the month
   • # of days after EOM ( End Of Month)
   • Day of month after EOM ( End of Month)

   Discount Days/Date: Enter the number of days or the date within which payment must be made for the customer/supplier to be eligible for a discount. If payment is recorded on the Discount Date or earlier, the discount is calculated on the invoice value.

   Balance Due Days/Date: Enter the number of days or date within which payment must be made, calculated from the date of sale.

   % Discount for Early Payment: If you give a discount for early payment, enter the discount percentage as a whole number and not as a decimal. For example, enter 2% as '2' not '0.02'. The discount is only calculated if the total of the invoice/bill is paid within the discount period.

   % Monthly Charge for Late Payment: If you charge for late payment, enter the monthly charge percentage as a whole number and not as a decimal. For example, enter 2% as '2' not '0.02'.

   Tax Code: Enter a tax/GST code by clicking on the Search icon and selecting a tax code from the displayed list. This is a mandatory field.

   Use Customer's Tax Code:Select this option if you want the customer/supplier's tax code to override an item's tax code in an item sale/purchase, or the allocation account tax code in a non-item sale/purchase to this customer/supplier.

   [New Zealand Only] Use Customer's GST Code: Select this option if you want the customer/supplier's GST code to override an item's tax code in an item sale/purchase, or the allocation account tax code in a non-item sale/purchase to this customer/supplier. Credit Limit: This is a dollar amount that a customer/supplier's outstanding invoices/bills total may reach. You will be alerted if you record a sale/purchase that exceeds that limit.

5. Click OK.

1. Open the customer or supplier's card.
2. Click Selling Details or Buying Details (as applicable). The terms for that card will appear in the lower portion of the window.
3. Modify the terms for the customer/supplier. Refer to the field definitions above for details.
4. Click OK.

If I change the default terms, will it change the terms on all my customer or supplier cards?

Changing the default terms won't change the terms on your existing customer and supplier cards. The new term settings will only apply to customer or supplier cards that are created after the default terms are changed.

If I change the terms for one of my customers or suppliers, will those changes carry through to sales or purchases that have already been recorded using that card?

Changing the terms of a customer or supplier's card won't affect the terms of invoices or purchases that have already been recorded. The changes will only apply to sales or purchases that are recorded after the change.

How do I change the terms on invoices and purchase orders?

With the invoice or purchase order open, click the arrow next to Terms at the top of the window. This will open the Terms Information window where the terms for this transaction can be changed.

After changing the terms and closing the Terms Information window, click OK to save the changes and close the transaction.

How is the discount apportioned?

Discounts applied to Invoices or Bills are apportioned over each of the line entries of those transactions. At the same time, the software creates, records, and applies the adjustment note to relevant Invoice or Bill.

The window below shows an Invoice with three line entries, and allows for a 5% Discount if paid before 8/8/2012.

Using this example, we will see how discounts are apportioned to the individual line entries, and how that affects the GST.

Open Receive Payments, select the Card and enter the payment details. The window below shows Receive Payments with a Discount of $5.15 which has been automatically applied.

After clicking Record the below alert will be displayed. Click Print Later or Print Now to finalise the payment and record the credit Note.

Clicking Cancel will close the alert and return you to the Receive Payments window without recording the payment.

The appropriation of the GST can be determined by opening the credit note. To find the credit note, from the Sales command centre, click Reports then highlight the Sales Detail report (under the Customer sub-heading). Click Customise then enter the required report parameters to capture the credit note. Ensure the Status option is set to Closed and the date entered in the Dated From and To fields is the same as the Date used for the Receive Payment.

With the report displayed, move your cursor over the credit note. When the cursor changes to a magnifying glass, click once with your left mouse button to open the credit note.

The window below shows the credit note which was applied to the sample invoice.

Manually entering an amount in the Discount field will have the same effect as if it was automatically entered as per the transaction's Terms.