The Terms Manager program is used to create and maintain the valid payment terms records that are used by the system. The payment terms records that are maintained in the Terms Manager are used when assigning the default payment terms for each customer and vendor in the system, and during sales and purchase order processing, accounts receivable and accounts payable invoice and payment processing, and other transaction processing.
Note: Since the terms records that you create and maintain in this program are used to validate customer, vendor and other information by the system, you may not modify the terms code field for an existing terms record.
Code: The Payment Terms Code. Each Terms code must be unique. The Prompt button to the right of the Code window can be used to activate the Terms Selection List, which can be used to display and to select from the valid terms codes that have been set up on your system.
Type: The type field is a newer field. It is used to determine if a specific terms code should be used only for customers and accounts receivable transactions, only for vendors and related transactions, or if the code or if it should be available for both customer and vendor side transactions. The field is not currently in use.
Active Checkbox: The Active Checkbox is used to determine if a terms code is active (checked) or inactive (not checked). The StreamV programs will not allow an inactive terms code to be used for a new record (the terms code is not displayed in the Terms Selection list if it is inactive), but it will allow you to complete an existing sales order that was processed with the inactive terms code. The StreamII versions of the system do not use the inactive flag.
Terms Type: The Type of Payment Term. Each Payment Terms must be assigned one valid type. The valid types include Cash In Advance (payment is received prior to shipping product or sent prior to receiving product), COD (Cash on Delivery – payment is sent or received at the same time goods are delivered), or Net Terms (payments is sent or received after the shipment of goods). A Y should be entered into the appropriate Terms type based on the payment terms being created or modified and a N should be loaded into the other two type fields. Only one Type should be set to Y in this section of the program.
Risk Level: The relative risk level for the terms code compared to the other payment terms in the system. The Risk Level field is used by the system when a terms code is changed on a sales order, and the system is determining whether or not the order should be held because of the change. Risk levels in the Terms file can be set from 1 – indicating the terms code has a low risk to 9 – indicating the terms code has a high risk. Normally a terms code like COD CASH would be assigned a low risk level (as the chances of being paid are very good), and a terms code of NET 60 would get a high risk level – since the payment is on terms and a longer period of time is being given to the customer to remit the payment. A –1 in the Risk Level will cause the system to skip checking credit for any orders using the terms code.
Discount Info: The Discount% and Discount Days fields are used to define the discount that is available when the selected terms code is used. The discount fields are used to determine and automatically calculate the discount amount for each invoice during accounts receivable payment processing or during accounts payable invoice entry. The Discount% field stores the percentage (ie 2.00 or 2%) of the invoice amt that can be discounted if the invoice is paid prior to the discount date. The Discount Days field is the number of days that are added to the invoice date to determine the discount date or the date by which the invoice must be paid in order for the discount to be taken. For example, 2%10 Net 30 terms would be set up with 2.00 in the Discount% field and 10 in the Discount Days field. This would cause the system to calculate a 2% discount for each invoice paid within 10 days of the invoice date.
Due Days Calculation Method
Number of Days
Day of Month (O for EOM)
Month Add Value
Hold All Sales Orders The Hold All Sales Orders flag can be used to automatically place a hold on any orders that are processed using the specified terms code. If a Y is entered into the field, then any sales orders that are processed using the terms will be placed on B or Terms hold by the system. If the terms code is a credit card term, and an A is entered into the Hold All Sales Orders window, the system will place a hold on the order using the value from the Automated processing code field (explained below).
Automated Processing Code: The Automated Processing Code field is used by the automated credit card processing software. This field is a numeric field and the valid entries for the field are 1 – 9.
Flooring Account: The Flooring Account Window is used by the Accounts Receivable/Order Completion Systems. The Flooring Account window is used to specify the account number of the Finance or Flooring company that the invoice will be assigned to during invoice creation when the specified terms code is used. If the Flooring Account field is loaded, the system will replace the BillTo Company in the invoice being created with the Company defined in the Flooring Account field and it will move the original BillTo Company for the Invoice to the SoldTo fields in the invoice. The Flooring Account field is used for situations where an invoice is shipped to your customer, but paid by a Finance Company.