When you first save the invoice header, Payables automatically schedules payment for each invoice based on the Payment Terms and Terms Date you enter for the invoice. Then during Invoice Validation, the system recreates the scheduled payments and overwrites any manual adjustments if:

1. The Recalculated Scheduled Payment Payables Option is enabled, or
2. The Exclude Tax from Discount Calculation Payables option is enabled and you have made changes to the tax amount on the invoice.

• Payables uses the Payment Terms definition to calculate the due date, discount date, and discount amount for each scheduled payment. For example, if an invoice has Payment Terms of Net 30, Payables calculates the due date as 30 days after the Terms Date.

• You can assign default Payment Terms to a supplier.
• If you enable the Recalculate Scheduled Payment Payables option, Payables will also recalculate your scheduled payments during Invoice Validation. This recalculation is based on your most favorable available payment terms and start dates.
• If you enable the Exclude Tax from Discount Calculation Payables option and the invoice has changes to the tax amount after the invoice is initially saved, Invoice Validation will automatically recalculate the Discountable Amount and recreate the scheduled payments to reflect the new Discount Amount. You can query the invoice to view the new Discount Amount in the Scheduled Payments tab.

The invoice Terms Date defaults from the supplier site Terms Date Basis option you select:

• System. System date on day of invoice entry.
• Goods Received. The date you receive goods for invoices you match to purchase orders.
• Invoice. Invoice date.
• Invoice Received. Date you receive an invoice.

Use the Scheduled Payments tab to review or adjust dates and amounts of all payments, including discount schedules, for an invoice. You can also schedule partial payments and place all or part of the scheduled payment on hold.

Important: You can manually adjust scheduled payments or use the Split Schedule functionality to adjust scheduled payments. The Recalculate Scheduled Payment Payables functionality will not overwrite those changes. However, if the Exclude Tax from Discount Calculation Payables option is enabled and changes have been made to the tax amounts and if the invoice is not fully paid, then Invoice Validation will overwrite any manual scheduled payments changes.

Discounts
Payables uses payment terms you assign to an invoice to pay invoices at a discounted rate. You define discount payment terms in the Payment Terms window. You can define discount payment terms that have Payables vary the discount amount
depending on how old the invoice is. You also define the payment terms to pay the full invoice amount if you have missed the discount date. For example, you can define payment terms to take a 10 percent discount if the invoice is paid within 5 days of the Terms Date, or a 5 percent discount if the invoice is paid within 10 days. If the invoice is over 10 days old, Payables pays the full invoice amount on the due date you specify.

When you first save the header information for an invoice, Payables automatically creates a scheduled payment. If the invoice uses discount payment, the schedule payment includes a discount date and discount amount. If you enter an invoice that does not have discount terms, you can modify the scheduled payment to include a discount.
If you take a discount, Payables uses the Discount Distribution Method you specify in the Payables Options window to credit the appropriate accounts. The Exclude Tax From Discount Calculation option you specify in the Payables Options window controls whether Payables subtracts the tax amount from the invoice amount when it calculates the invoice amount applicable to discount. Note that if you apply a prepayment with a discount to an invoice due a discount, you may need to adjust the discountable amount by the prepayment application amount to ensure that the discount taken is not
overstated.

If the Exclude Tax From Discount Calculation option is enabled and changes have been made to the tax amounts and if the invoice is not fully paid, then the Invoice Validation recreates the scheduled payments based on the new discountable amount.

DISCOUNT RESTRICTIONS
BANK CHARGES: You cannot use the Discount feature if you enable the Use Bank Charges Payables option.