Handling Special Terms

Overview

In this document, we will review the process on how to handle managing special terms that you’ve received from a vendor. For example, you place a large PO, and it is determined by the Vendor that you’ll receive payment installments, and discounts, for X amount of days, i.e. 2% discount for two equal payment installments if paid within 60 days (2% Net 30 payments, both eligible for discount). This document will explain how to set these special terms within Savance Enterprise, as well as how to enter and pay these specific bills.

Creating Special Terms

• Within your top menu go to Admin>Administrator and select the Term Code tab.

  

• Select ‘New’ to create the Term Settings for this Term Code.

  

• Fill out the new Term Code, and Settings that need to apply. In this case, we will create a 2% 2x2 60 NET (2% discount, for two separate NET 30 payments within NET 60).

  

• Once you’ve filled out the correct information select ‘Add’ to save your entry.

Vendor Management

• In the circumstance that this should be the default terms for a specific Vendor, you can manage the default Terms within the Vendor’s account.

• From the top menu go to Purchasing>Manage Vendors

• Find the Vendor account you wish to update, and select the ‘Account Info’ tab

  

• Under the Credit/Pricing area, choose your new Term Code from the drop-down menu. Once you’ve made your selection, hit ‘Save’ to update your changes. NOTE: If you wish NOT to make these terms as the default you can make an update to your terms at bill creation.

Creating A Bill

• When the PO has been received you are now ready to create a bill for this invoice. Under the Accounting>Accounts Payable menu you will select ‘Enter Bills’.

• Enter your PO number and verify that the Vendor information is correct.

  • Verify the Terms code is set correctly, or choose the specific Term Code to reflect how this bill should be paid.

  • Verify that your Discount Date reflects the 30, 60, 90 days, etc. to receive your appropriate discount.

  • Verify your Discount amount reflects the correct percentage, i.e. 2%

  • Ensure that your Due Date is set for the last possible day the bill can be paid regardless if you want the discount or not.

• NOTE: You’ll need to create an indicator on this bill to know it requires special attention upon paying it. To do this simply place an ‘*’ (asterisk) before the Vendor’s invoice number. If you don’t have a Vendor’s Invoice number you can simply put an ‘*’ and the terms information (i.e. *2% 2x 60), as a reminder that there is further action needed when paying or referencing this bill.

  

• In addition, you can scan and attach any documents that you have to reference back to in the future about this bill so you can pay accordingly.

  

Paying A Bill

• When it’s time to go through your bills that are due you will go to Accounting>Accounts Payable and select ‘Pay Bills’. Using the filter you can select the Age Date Basis, and Age Date to view all your outstanding bills.

• Look for any bills that have the ‘*’ (asterisk) in the Ref No. column to further investigate and pay close attention to.

  

• Select the bill’s link to view the bill details.

• Verify that your Terms, Discount, and Totals are correct.

• Look within your ‘EDocuments’ and Notes tab for any additional information that has been added for your reference. Once you’ve verified everything is correct, select ‘Close’.

  

• In the ‘Pay Bills’ screen double-click on the ‘Amount to Pay’ column and short pay the amount that is due. *In this case, your total bill totals $3050.25, and your terms are set to 2% 2x 60, so you'll receive your 2% discount if you pay in 2 installments over the 60 days. So you’ll divide your total due by the number of installments and that will be your short pay amount, i.e. $1525.12 will be paid.

  

• When you are completed paying your bills, select ‘Pay Bills’ to save your changes.

• The ‘Balance Due’ column now reflects a lower balance.

  

• Now that month’s bill is complete you’ll need to set up payment for your next installment. From the same ‘Pay Bills’ screen, click the bill link to view the bill details.

• Select ‘Edit’

• Update your new, ‘Discount Date’ and select ‘Save’. The Due Date will remain the same because this is the final Due Date. This bill will now appear within your ‘Outstanding Bill’ queue the next time you filter within that Discount Date and or Age Date.

  

• You’ll repeat the above ‘Paying a Bill’ steps until your allotted installments are completed and your balance is paid in full.