1. Define Payment Terms
Payables Manager –> Setup –> Invoice –> Payment Terms
Payments Terms are assigned to an Invoice to automatically create scheduled payment when
Payables Invoice Validation is submitted for the Invoice
You can define payment terms to create multiple scheduled payment lines and multiple levels of
discounts. You can create an unlimited number of payment terms.
Payment terms have one or more payment terms lines, each of which creates one scheduled
payment. Each payment terms line and each corresponding scheduled payment has a due date or
a discount date based on one of the following:
a specific day of a month, such as the 15th of the month
a specific date, for example, March 15, 2002
a number of days added to your terms date, such as 14 days after the terms date
a special calendar that specifies a due date for the period that includes the invoice terms
date. Only due dates can be based on a special calendar. Discount dates cannot be based
on a special calendar.
Payment Terms
Define Payment Terms
1. Enter Unique payment term name and description.
2. If you enter Day of Month terms, enter a Cut-off Day.
3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a
unique value in the Rank field.
4. Enter each payment terms line.
Enter % due or Amount to determine the portion of an invoice due on the scheduled payment.
2. In the Due tab, choose between Calendar, Fixed Date, Days and Day of Month and Months
Ahead to determine the due date.
1. If you use discount terms, define payment terms lines in the First Discount , Second
Discount, and Third Discount tabs. Define your discounts so that the first discount has an
earlier discount date than the second and so on. You can realize only one discount on a
payment terms line.
Note: You cannot use a special calendar to define discount terms.
Accounts Payable Setup: Set Multi-Org Preferences
Set Multi-Org Preferences (optionally required)
Payables Manager –> Setup –> Options –> User Operating Unit Preferences
Multi-Org Preferences
If you are using a Multi-Org structure, and you want to restrict Org Access, then set the Multi-
Org Preferences.
Set the User Level Default Operating Unit.
Set the Preferred Operating Units.
3. Accounts Payable Setup – Define Payables Options
You cannot define the Payables Options unless the Financials Options have been defined.
Payables Manager –> Setup –> Options –> Payables Options
Based on your profile options, your ‘Operating Unit’ is automatically picked up.
1. Accounting Option
Payables Options: Accounting Option
13. Payable Options: Reports
Accounts Payable Setup – Financials Options
Prerequisite: Inventory Calendar and Inventory Organization must have been set up.
Refer to the following documents:
Define Inventory Calendar
Setup Inventory Organization
Payables Manager –> Setup –> Options –> Financial Options
Based on your profile options, your ‘Operating Unit’ is automatically picked up.
Refer to the following documents:
System Profile Values for GL
Define Operating Unit (Document to follow)
You have to fill in the following tabs to configure the Financials Options:
1. Accounting
2. Supplier – Purchasing
14. 3. Encumbrance
4. Tax
5. Human Resources
1. Accounting
Financial Options: Accounting
Specify the number of ‘Future Periods’. Fill in the GL Accounts where required.
Note: If during the defining of our Accounting Key Flexfield Structure, we have allowed
dynamic insert, we can enter the accounts directly without having to create the accounts first. If
that is not the case, then we need to create all the valid accounts combinations before we can use
them here.
Refer to the following documents:
Define Accounting KFF – Create Chart of Accounts
2. Supplier – Purchasing
15. Financials Options: Supplier-Purchasing
Specify the Ship-to Location and Bill-to Location. Inventory Organization is mandatory.
Note that we need to create the Inventory Organization and define the Additional Organization
Information Details.
3. Encumbrance
18. Financials Options: Human Resources
Based on your profile options, your Business Group is automatically picked up.
Specify your ‘Expense Reimbursement Address’. The Employee generation method is
automatically picked up from the Extra Information configured on your Business Group.
Refer to the following documents:
Define Business Group (Document to follow)
