Payment Term Creation In Payables and Receivables Oracle apps

Payment term setup in Account Payables

In this post we will see how we create/setup payment term in oracle payable and receivables.

Payment terms are created to calculate the due date for a invoice.

Steps To Create/setup Payment Terms in payables

Navigation : Responsibility Payables Managers >go to Setup >Invoice >Payment Terms

Now here lets take an Example: 

We created a Payment Term – 15/45 Net 90

Explaining the above payment term : Supplier will offer you 15% of discount and if you pay the invoice in next 45 days. The total invoice amount is due in 90 days. In such case,  payment term will be setup 

as follows.

Payment term setup in Account Receivables

Responsibility: Receivables Manager
 

Navigation: Setup > Transactions > Payment Terms

The setup which is shown below is created for a payment term which has a due date  of 60 days from the transaction date. If the invoice is paid in 10 Days then we will give 2 Percent discount on the Invoice.

Payment Term setup In Payables and Receivables