Add a term—Accounts Payable

Define the rules that a vendor establishes for extending credit to you on the AP terms information page. You can then assign a term to a vendor, so that it becomes the default term for new bills, or apply it to individual bills as you create them.

For vendors who extend credit for payment before an established time, create a term that includes information on the discount calculation. Sage Intacct uses this information to calculate the amount due for bills using this term, when you make payment within the discount time frame.

1. Go to Accounts Payable > Setup > More and select Add (circle) next to Terms.

2. In Name, enter the name of this term.

   Intacct displays the name on bill and vendor information pages.

3. In Description, enter a note about the purpose and use of this term.

4. Define the calculation for the Due date by entering the number of days and either the date or month to reference.

   For example:

   • To set a due date that's calculated from the bill date, such as a Net 30 term, enter the number of days in Day, and select from invoice or bill date from the dropdown list.
   • To set a due date to a day of the month following the bill date, enter the day of the month in Day, and select a month setting from the dropdown list. For example, to set terms for the 15th of the month after the bill date, type 15 in Day, and select "of next month from invoice or bill date" in the dropdown list.

5. If applicable, set the terms of the Discount extended by the vendor:

   To set a discount that references the number of days from the bill date, such as 2%-10 (2% discount when paid within 10 days)

   1. Enter the number of days in Day.

      For example, for 2%-10, enter 10.

   2. Select from invoice or bill date from the dropdown list.
   3. Enter the discount amount in Amount.

      For example, for 2%-10, enter 2.

   4. Select Fixed amount or Percent from the dropdown list.

      For example, for 2%-10, select Percent.

      If you select Fixed amount, the amount deducted uses the transaction currency.
   5. Enter the number of days before the vendor withdraws the discount in Grace days.
   6. Select the total to use when calculating the discount.

      You can have Intacct make the calculation based on one of the following:

      • The Line-items total, excluding added charges, such as taxes and shipping
      • The Bill total, including all charges
        For Canadian Sales Tax users: To capture taxes for Canadian GST on the amount before the discount is applied, you must select a term discount that calculates based on the line-item total. For more information, see Capture tax on term discounts.
        
   To set a discount based on a day on a month referenced from the bill date

   1. In Day, enter the day of the month.

      For example, for a discount offered when paid by the 15th of the month, enter 15.

   2. Select a month setting from the dropdown list.

      For example, if the discount is available when paid by the day of the month, in the month following the bill date, then select of next month from invoice or bill date from the dropdown list.

   3. Enter the discount amount in Amount.

      For example, if the discount is 3%, enter 3.

   4. Select from invoice or bill date from the dropdown list.
   5. Enter the number of days before the vendor withdraws the discount in Grace Days.
   6. Select the total to use when calculating the discount, either the line items total, excluding added charges, or the bill total.
6. To set a penalty for paying after the due date, in the Penalty section set the following:
   1. In Cycle, set cycle to the time span in which the penalty accrues, such as Weekly, Biweekly, Monthly, and so on.
   2. In Amount, type the penalty amount.
   3. Select Fixed amount or Percent from the dropdown list.
   4. In Grace Days, enter the number of days after the due date that the vendor applies the penalty.
7. Select Save.

Next step: Assign the term to a vendor or apply it to a bill