Suggestion: Payment terms are also called the credit terms. Credit terms can be defined for new suppliers whose payment terms are ” Within 30 days from the date of AWB & BL (Airways bill and Bill of lading) “. The conditions under which a seller will complete a sale. These terms specify the period allowed to a buyer to pay off the amount due, and may demand cash in advance, cash on delivery, a deferred payment period of 30 days or more.
For Credit term master menu path is SCM –>SCM Settings –>Pricing / Credit Policy –> Credit Terms. Follow the below steps to define:
1) Enter the code assigned to identify the credit term. This code must be unique and has to be present in the Credit Term master. It can be selected.
2) Enter Start From, It should be selected from the drop down values .It indicates from which event the credit period should start. It can be selected as from Bill date.
3) Enter the Description of the credit term as Within 30 days from the date of AWB.
4) Enter the Number of days of credit as 30 days.
5) Enter the type of the credit term. It can be NA.
6) Thru should be selected from the drop down values .It indicates Whether the payment is through Bank /LC/Direct.
7) Enter the Minimum number of outstanding days.
8) Users can finish the definition with mandatory information.