About terms—Accounts Payable

Accounts Payable terms define the rules that a supplier 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 supplier

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

Intacct use the term to determine the due date for a transaction. When you use Pay AP supplier invoices 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.