Defining Customer Terms (6417)
You need to specify a number of variables for the basic customer terms:
The name that will appear in the list. Terms are usually named after the time periods and discounts they contain. "1% 10, Net 30" means the balance is due within 30 days and the customer will receive a 1% discount for payment within 10 days.
The date from which terms are calculated. You can choose to calculate from the invoice date or the end of the month in which the invoice was issued.
The due days, which specifies how long the customer has to pay without penalty.
The discount days, which specifies how long the customer has to pay while still
receiving a discount.
The discount percentage the customer receives if they pay within the specified discount period.
If you want to assess finance charges against overdue invoices from this customer, click the Assess Finance Charges checkbox. When this checkbox is checked, the Assess From and Annual Rate fields become available. These fields are used to calculate the finance charges that appear automatically in the Finance Charges window. You can change the actual amount of the charge. See "Assessing Finance Charges," later in this chapter.
The Assess From field lets you decide whether to assess finance charges from the date of the invoice or from the end of the month.
The Annual Rate field lets you enter a percentage rate for the charges.