Payment Terms
For International Trade modules, all Payment Terms are based on the ship date. Thus, in case of Advanced Payment Term, the due date is always prior to the Ship Date. Therefore, in Days, you must enter a negative number; however, you need to use the In Installments type, which allows to enter a negative number for the days.
International Trade modules have 3 types of payment terms:
| • | Cash: Single payment of FOB value due on ship date; however, after registering the clearance date (Clearance Maintenance routine), if no payment has been made, the system automatically considers the clearance date as due date. |
| • | Regular: Single payment of FOB value, with due date from 1 to 899 days as of ship date. |
| • | In Installments: Spreads the FOB value up to 10 installments, including advanced installments, with due date as of ship date. |
When you select In Installments, you must type, in Nr. of Days, a value = or > 900, so the system does not consider the content of Nr. of Days for payment or due date.
Procedures
To add a payment term in installments:
| 1. | In the Payment Term maintenance window, select Add. The system displays the addition screen divided into folders that facilitate management of information. |
| 2. | Fill in the data according to the field's help instructions. |
| 3. | However, pay attention while filling up some fields in the following folders: |
Folder - Registration
| • | Coverage: The type of Hedge defines the fields to be entered: |
Coverage |
Field |
up to 180 DSO |
Modality |
from 180 to 360 |
Modality |
Over 360 |
Financial Institution |
No Hedge |
Reason |
Folder - Installments:
| • | Percentage of each installment and due dates must be indicated in this folder. |
Example:
Installment |
Percentage |
Nr. Days |
01 |
20% |
-60 |
02 |
40% |
30 |
03 |
40% |
60 |
To add an advanced payment term, in Installments folder enter 100% as due percentage and negative due days. |
