Minimum Version Required: 25.01
Pre-Conditions
You need to set up different payment terms for a single customer or AR Account based on various factors (for example, specific order types, payment methods, or delivery locations).
You have administrative access to the "Payment Types" and "Credit Terms" tables in your Encompass system.
You know the specific customer and their AR account number for whom you need to implement these multiple payment terms.
You have a clear understanding of the different payment term scenarios required for this customer.
Steps
Identify or Create the Necessary Payment Types (If Necessary):
Go to the Payment Types table in Encompass.
Look at the existing payment types to make sure you have separate types for each payment situation if needed (for example, 'Standard Check', 'Expedited Payment', 'EDI Payment').
If a specific payment type doesn't exist for a situation:
Select 'Add Payment Types'.
Fill in the required fields for the new payment type (for example, Name: 'Expedited', Description: 'Payment with Expedited Terms').
Select 'Add Record' to save the new payment type.
Create the Different Required Credit Terms:
Go to the Credit Terms table in Encompass.
For each different payment term situation, select 'Add Credit Terms'.
Fill in the required fields for each set of credit terms. This will include:
Term Code: A unique code for these terms (for example, 'NET30STD', 'NET15EXP', 'NET18EDI').
Description: A clear description (for example, 'Net 30 Days (Standard)', 'Net 15 Days (Expedited)', 'Net 18 Days (EDI)').
Days of Credit: Enter the number of net days for the specific payment term (for example, '30', '15', '18').
Other relevant fields as required by your system.
Select 'Add Record' to save each set of new credit terms.
Associate the New Credit Terms with the Relevant Payment Types:
For each Credit Terms record you created:
Find the Sub Tables dropdown and select 'Terms Payment Types'.
On the Terms Payment Types subtable, select 'Add Terms Payment Types'.
Select the matching Payment Type that should be linked to these credit terms (for example, link 'Net 18 Days (EDI)' to the 'EDI' Payment Type).
Save Changes to the Terms Payment Types subtable.
Determine How to Apply Different Terms to the Customer's AR Account:
Question: Who is paying invoices for this customer?
Option A (AR Account Based): If there are 2 different entities paying for a single customers invoices, you will need to have separate AR Accounts and split invices with the different AR Accounts set. You can then set each AR Account to a separate term and set the respective AR Account on split invoices. A good example of this is a corporate chain paying for thwe NA Products, but each store being responsible for paying for products containg alcohol.
Option B (Same AR Account, Different Terms): If there is only 1 entity paying for all invoices regardless of product, but there is a requirement to have different terms based on the product being delivered then you will need to set and manage terms on the split invoice level. You will set up a single AR Account for the customer, and set a single term on this AR Account. You will then need to set up split invoices and set the term on the split invoices to ensure product being delivered has the proper term.
Configure EDI Transmission Settings (If Applicable to One of the Scenarios):
If one of the multiple term situations involves EDI, review your EDI setup for this customerby checking if the term is tied to a cvonfiguration through exchange configuration terms, or if the AR Account needs to be tied to EDI through exchange configuration AR Accounts.
If you have trouble setting up multiple payment terms for a single customer/AR Account, contact Encompass Support and provide the following information for efficient troubleshooting:
The specific AR Account number and customer name involved.
A detailed explanation of the different payment term situations you are trying to set up for this customer.
The specific payment terms (for example, Net 30, Net 15, Net 18 EDI) you need to use and when each should be applied.
Examples of invoices or orders where the wrong payment terms are being used.
Fields And Definitions
Payment Types Table: A table in Encompass where you define different ways to pay (for example, Check, EDI, Credit Card) or categories that might lead to different payment terms (for example, Standard Order, Rush Order).
Credit Terms Table: A table in Encompass where you define the terms of credit offered to customers, including the number of net days.
AR Account (Accounts Receivable Account): A record in Encompass that keeps track of the financial transactions and balances for a specific customer.
EDI (Electronic Data Interchange): The computer-to-computer exchange of business documents in a standard electronic format between business partners 1 (relevant if one of the multiple terms is for EDI).
Net Days: The number of days after the invoice date when payment is due (for example, NET 30 means payment is due 30 days after the invoice date).
Terms Payment Types Subtable: A subtable linked to Credit Terms that allows you to connect specific credit terms to specific payment types.
Due Date Field (EDI Transmission): A field in the EDI invoice document that says when payment is due (relevant if one of the multiple terms is for EDI).
Invoice Numbering Convention: The specific format and structure used for creating invoice numbers (relevant if one of the multiple terms is for EDI and has specific rules).
Best Practices
Clearly define and write down all the different payment term situations for the customer.
Train users on how to correctly choose payment types or apply the right credit terms when making transactions for this customer.
Test each payment term situation carefully to make sure it is being applied correctly.
Regularly check how payment terms are being applied to this customer's account to ensure they are accurate.
If you are not sure about the best way to set up multiple terms, it's best to ask Encompass Support for help.