How Due Date Is Calculated for Standard Accounts Payables Invoices? (Part 1 - Terms Date)

Many times when implementation is over key users or users in charge with reporting are starting to raise more in depth questions about setup and logic behind each value option available for different fields. One I have come across recently is about How due date is calculated for standard account payables invoices?

The answer is quite simple at high level: payment term on top of terms date (start date when Payables calculates the due and discount dates for invoice scheduled payments). But this answer raise new questions like:

1. Which are available terms date options?
2. How terms date is defaulted at invoice level?
3. How much flexibility payment term have in regards of configuration?

This video will answer to the above first two questions and show some real examples about how due date is calculated. Third one is treated in a separate post.

Setup configuration

Let’s first have a look to setup configuration. Payables has following available options for deriving Terms Date Basis:

• System - Current date of your Payables system, automatically filed by system
• Goods Received. Date you receive goods for invoices you match to purchase orders, manually entered by user
• Invoice - invoice date, automatically filed by system
• Invoice Received - Date you receive an invoice, manually entered by user

The default value for Terms Date Basis is required during Payables System Setup and this value will be automatically inherit by all new suppliers.

Demo

• Enter invoice when Terms Date Basis = Invoice Received at site level 
• Enter invoice when Terms Date Basis = Goods Received at site level 
• Enter invoice when Terms Date Basis = Invoice at site level 
• Enter invoice when Terms Date Basis = System at site level

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