About terms—Accounts Payable

Accounts Payable terms define the rules that a vendor establishes for extending credit to you.

Terms define:

• When the transactions are due

• Discounts applied for early payment

• Penalties assessed for late payment

• Any grace period extended by the vendor

The terms that you set up in Accounts Payable are available for you to apply to individual bills, when you enter them, and Vendor information records. When you add the term to the vendor information, Intacct applies the term to transactions you create after that point. You can override the default term for an individual bill, as needed.

Intacct use the term to determine the due date for a transaction. When you use Pay bills to make payments, the term is used to calculate the total amount due based on the payment date.

When you use the Canadian tax solution, you can set up your terms to calculate GST correctly on the discounts applied in a transaction. For more information, see Capture tax on term discounts.