How to Define Payment Terms in Oracle Receivables in Fusion

How to Define Payment Terms in Oracle Receivables in Fusion

 

Payment Terms in Oracle receivable helps you to Define the Due date of your Customer Invoices. It helps us to calculate the Customer Outstanding Ageing report. Payment terms can include a discount percent for early payment and you can assign multiple discounts to each payment term line. We can also create split payment terms for invoice installments that have different due dates like we ask payments from customers against Customer Invoices in multiple installments with different -different due dates. Like 25% Customer Invoice Payment should come in 30 days. Next 75% should come in 90 Days.

 

Receivables provides two predefined payment terms:

• 30 NET: The balance of the transaction is due within 30 days.

• IMMEDIATE: The balance of the transaction is due immediately (i.e. on the transaction date). You can use this payment term with your chargebacks and debit memos.

 If you want transactions assigned to this payment term to be printed before the due date, enter a number of Print Lead Days. Receivables will print this transaction x number of days before the due date, where x is the number of days you enter here.
To associate a credit check with this payment term, check the Credit Check box. Oracle Order Entry uses this information to determine when to place an order on hold.
If you do not want to let your customers take discounts for partial payments on items associated with this payment term, uncheck the Allow Discount on Partial Payments check box.

 Enter the First Installment option for items assigned to this payment term. This indicates how Receivables will allocate the freight and tax charged to transactions using this payment term. Choose 'Include tax and freight' to include all tax and freight charges in the first installment. Choose 'Allocate tax and freight' to distribute tax and freight charges across all installments

We can calculate Invoice discounts on these below parameters.

Invoice Amount: Choose this option to calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices.

Lines Only: Choose this option to calculate the discount amount based on only the line amounts of your invoices.

Lines, Freight Items and Tax: Choose this option to calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level.

Lines and Tax, not Freight Items and Tax: Choose this option to calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices.

Enter a line number for the installment term that you are defining in the 'Seq' field. Enter a higher number for each installment term with a later due date. For example, if you create terms with 50% due in 15 days and 50% in 30 days, enter '10' in this field for the first line and '20' for the second line.

Step1:- 
Go to Navigator è Setup and Maintenance


 
Step2:- Find the Manage Payment Terms as search Below..

 
Step3:- Here we are creating Below , 50 days Payment Terms and also we are giving 2% discounts with in the 10 days of the payment.

 
 
How to Define Payment Terms in Oracle Receivables in Fusion