Configuring Terms. Savance. Phone: Fax:

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1 Savance Phone: Fax:

2 Table of Contents Overview Managing Term Codes 1 Relative... Terms 2 Date Driven... Terms 4 How are... Term Codes Generated? 6 Using Terms in Payments 6 2

3 Overview This document will show you how to configure Terms in Savance Enterprise, allowing you to understand how the Term Codes are generated and how to use these Terms in payments. You can create and manage Terms by going to Admin > Administrator > Term Code. This will bring up the following window: Managing Term Codes When you are in the Term Codes tab of the Administrator, you will be able to create a new Term by clicking New. When creating terms, you will be able to set different Term Types, and the available fields will vary based on which Type is being used. Each is described in the following sections. 2.1 Relative Terms Let's say that when an invoice is created, it has to be paid within 0 days. This means that if an invoice is generated on June 15, it's due date will be July 15 (0 days later). If you wait until June 28, it's due date will then be July 28 (still 0 days later). In other words, the due date is Relative to the date that the invoice was generated. If this is how you would like to set up your terms, be sure to select Relative Terms, as seen below:

4 The Term Settings will determine how due dates and other values are determined (relative to the date that the invoice was generated). See the section below for details and examples. Term Code: Discussed in a later section Discount Percentage: This determines the discount amount only if the Discount if paid within X days is met Net due in X days: This is how many days the customer has to pay the invoice after it is generated. Discount if paid within X days: If the customer pays for the invoice within this many days, they will receive the discount amount that is specified above Maximum discount amount: A discount will never be greater than than this amount. In this case, the discount will never exceed $100. Let's look at the example above to see how the term would be used. Let's say an invoice for $1000 is generated on June 5. This means that the customer's due date is July 5 (0 days later). If the customer pays by June 12 (within 7 days), the customer will receive a discount of $60 (the 6% discount specified). However, the customer will never receive a discount greater than $100. If the invoice was generated a week later, all of the dates would be shifted up by a week. This is the basics of how relative terms are set up. 2.2 Date Driven Terms Let's say that when an invoice is created, it has to be paid before the 0th of the month. This means that if an invoice is generated on June 15, it's due date will be June 0. If you wait until June 20, it's due date will still be June 0. If you wait until July 1, the due date will then become July 0 (since you have moved to a new month). In other words, the due date is Date Driven. If this is how you would like to set up your terms, be sure to select Date Drive Terms, as seen below: 2014 Savance 4

5 The Term Settings will determine how due dates and other values are determined (based on the month that the invoice was generated). See the section below for details and examples. Term Code: Discussed in a later section Discount Percentage: This determines the discount amount only if the Discount if paid on or before X day of the month is met Net due before the X day of the month: This is the day of the month the customer will have to pay the invoice. Discount if paid on or before X day of the month: If the customer pays for the invoice by this day of the month, they will receive the discount amount that is specified above Due the next month if issued within X days of the due date: Let's say the invoice is due on the 0th of the month. Well if the invoice is generated on the 29th, you don't want to give the customer only 1 day to pay the invoice. So this value determines how many days before the due date is allowed until it is shifted to the next month. So if an invoice is generated on the 29th, it will not have to be paid until the 0th of the next month. Maximum discount amount: A discount will never be greater than than this amount. In this case, the discount will never exceed $100. EOM: This means "End of Month". If this is checked, the corresponding date will be the last day of the month (so the 1st for January, the 28th for February, the 0th for November, etc.) Let's look at the example above to see how the term would be used. Let's say an invoice for $1000 is generated on June 5. This means that the customer's due date is June 0. If the customer pays by June 7, the customer will receive a discount of $60 (the 6% discount specified). However, the customer will never receive a discount greater than $100. Let's say the invoice wasn't generated until June 15. The due date would still be June 0. However, if the invoice wasn't generated until June 21, the due date will be shifted to the next month because June 21 is within 10 days of the due date. So in this case, the due date would be July 0. 5

6 2. How are Term Codes Generated? You will notice that the Term Code value is optional. If you would like, you may specify a name for this term by entering a value into the Term Code. However, if you don't, the term code will be automatically generated. If you choose for it to automatically generate, you will need to understand the semantics. This is best explained through examples, as seen below: NET 0 The net balance is due in 0 days from the invoice date. No discount is offered. 2% NET 0 The net balance is due in 0 days from the invoice date, and a 2% discount will be given if the balance is paid in full within 0 days of the invoice date. 2% 10 NET 0 The net balance is due within 0 days from the invoice date, but the customer is given a prompt payment discount of 2% if they pay in full within 10 days of the invoice date. Using Terms in Payments In order for you to apply these terms for a customer, you will need to go to the Account Manager. Once you have looked up a customer, go to the Financial Terms tab. In the Settings section, you will see that there is a Terms box. Simply select the term that you would like to associate with this customer. You can also select the terms you would like to be applied for your organization when paying bills. When you are in the Enter Bills section of the Accounting Manager, you will also be able to select the terms in the Terms section, as seen below Savance 6

7 Thank you for choosing Savance! Savance Phone: Fax: SE-HG-Terms 1.0.0