Up to five payment terms and discounts for early payment can be set up in Drake Accounting. Once these terms have been set up, you can identify the terms that apply to each customer in Customer Setup. Go to Receivables > Customer Setup, select the customer, and on the Customer Info tab, select the desired terms from the Terms drop list field. Terms specific to the customer appear on their invoices.
To set up terms, complete the following:
- Go to Receivables > Options > Payment Terms.
- Complete the following fields:
- For Terms codes 1-5, enter a description for the term (e.g. 5/10 Net 30).
- Discount Percent
- For all codes, enter the percentage of discount to be applied to an invoice when the invoice is paid in full within the number of days specified in the Discount Days field.
- Discount Days
- For all codes, enter the number of days after the invoice date that a customer will receive the early payment discount specified in the Discount Percent field.
- Due Days
- For all codes, enter the number of days after the invoice date that an invoice must be paid in full before it is considered delinquent.
- This value must be equal to or larger than the number in the Discount Days field.
- Click Save.
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