Day Limit in Change View "Terms of Payment":Details?

[Former Member]

What does exactly does the Daylimit field in

"Change View " Terms of payment": Details "means?

A detail explanation with an EXAMPLE is well appreciated.

Thanks for your time

[atif_farooq · Accepted solution]

Dear:

Day limit field species the number of days after which invoice will become due. E.g

You created a payment term 2% 16 days

You will give 2 percent in %age column and 16 days in days column.

Once an invoice is generated using this payment term, the due date for invoice as 16 days. This day field is a key field in payment term for determining the aging of invoice. After 16 days invoice will become overdue and credit check will be forced if you have implemented any. This is for your information.

Regards

[Former Member · Accepted solution]

Dear Atif,

I understood what u said..But

There is a field called DayLimit under the payment term in the top of the screen(header section).

What u said is regarding the fields in the payment terms section.

Could explain me on this

-

Harsh

[atif_farooq · Accepted solution]

Dear:

Terms of payment can be interpreted using day limit field as per requirement. E.g if you want to setup a payment term of 7, 14, and 21 days with the following scenario:

The baseline date is 21 of each month, with the criteria given under

If the transaction is before 21 of the month, say 20 Jan 2010, then the baseline date is 21 Jan 2010, and first dunning will be on 28 Jan 2010

If the transaction is after 21 of the month, say 22 Jan 2010, then the baseline date is 21 Feb 2010 ( next month), and first dunning will be on 28 Feb 2010.

To cater the same you will have to use day limit function as given

Create

Payment term A

Day limit = 21

Baseline date calculation / Fixed day = 21

Default for baseline date = as desired

Payment term B

Day limit = 31

Baseline date calculation / Fixed day = 21

Baseline date calculation / Additional months = 1

Default for baseline date = as desired

Hop this will clear.

Regards

[Former Member · Accepted solution]

HI

Day Limit

Day of the month up until which the corresponding terms are valid.

Use

For terms of payment which depend on whether or not the baseline date is after or before the 15th of the month, you can define a two-part payment term under the same terms of payment key. The terms of payment key is expanded by the day limit entered here. Thus there are two entries in which different terms can be specified.

Example

The following terms of payment require you to enter a day limit:

Documents with an invoice date on or before the 15th of the month are payable on the last day of the next month

Documents with an invoice date after the 15th of the month are payable on the 15th of the month after the next month.

[Former Member · Accepted solution]

Hi,

The DayLimit Under Payment Term is Used to specify Perticular date to which you want the " Payment Term" or Condition should apply on the Invoice. Explain you with simple example.

Eg: 1.Payment Term 1001

DayLimit 15

Discount 2%

With the above inputs system Consider only the invoices posted on and before 15th date for 2% discount and for the Invoices posted after 15 of every month the said discount is not calculated or system will not consider the line for discount.

Eg. Payment Term 1001

Daylimit 31

Discount 4%

with the above inputs system consider's invoices posted from 16 to 31 dates for discount of 4%.

So If requirment is like this invoices posted on or before 15 should get 2% discount and invoices posted between 16 to 31 should get 4% discount then you can create the above manner.

Hope you doupt is cleared .

Thanks

Goutam

[Former Member · Accepted solution]

create payment term A with day limit 15, fix day 15, fix date 30 and additional months 1 and save it

now copy the same payment term dont change the payment term (name) just change day limit to 30,( payment term will allow to create two payment term with same name but it has to have different day limit) and give fix day 30 fix date 15 and additional month 2 and save it.

so it is like 2 different payment term with in 1, so if you enter invoice before 15th it will calculate due date by addition 1 month + fix date (30) and if you enter invoice after 15 then due date will be fix day 15 and additional 2 months.

Hope this is useful