1.  a specific day of a month, such as the 15th of the month
2.  a specific date, for example, March 15, 2002.
3.  a number of days added to your terms date, such as 14 days after the terms date
4.  a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.

Each payment terms line also defines the due or discount amount on a scheduled payment. When you define payment terms you specify payment amounts either by percentages or by fixed amounts. After you define your payment terms, in the Payables Options window you can select default payment terms that Payables automatically assigns to the suppliers and supplier sites you enter.

The payment terms for a supplier site default to the invoices you enter for the site except in the following circumstances:

• You enter a PO Default or QuickMatch invoice in the Invoice Workbench, in which case the terms default from the purchase order.
• You import an invoice record that has payment terms specified on the record, or the import process can derive terms from purchase order matching.

You can override the default payment terms on any invoice.

Attention: If you update the payment terms on an invoice, Payables immediately recalculates the scheduled payment for
the invoice. Thus, you must re–enter any manual adjustments you made to the previous scheduled payment. For example, if you update the payment priority on a particular scheduled payment and then change the payment terms, Payables will
immediately recalculate the scheduled payment using the same payment priority defaults as before and you will need to update the payment priority again.

1.1 Cutoff Day  For Day of Month type terms only, the day of month after which the due and discount dates of the scheduled payment will be in a future month. The exact month depends on the value you enter for Months Ahead. Payables compares the invoice terms date to the Cutoff Day. If you leave this field blank, Payables always uses the current accounting month to determine the due and discount dates. For example, your Cutoff Day is 11, your Months ahead is zero, and your Day Of Month due date is 15. If you enter an invoice with a terms date of January 12, Payables will set the due date for February 15. If you use Due Days or Fixed Date type terms, do not enter a cutoff day.

1.2 Rank If you enable Recalculate Scheduled Payment, enter a unique value to rank your invoice terms. 1 is the highest rank. Payables uses ranks to choose the most favorable payment terms from the invoice and purchase order. During Payables Invoice Validation, Payables recalculates the scheduled payment using the most favorable terms only if the Recalculate Scheduled Payment Payables option is enabled.

2.1 % Due The portion of an invoice due. The total of your scheduled payment lines must equal 100%. You cannot combine percentages due and amounts due for one set of payment terms.

2.2 Amount For amount due terms only, enter the amount due. Typically amount due terms have more than one payment terms line since you must specify zero as the amount on your last payment terms line.
Payables uses the zero amount payment line to determine the remaining amount due on the last scheduled payment.

3.1 Calendar If you enter a value in the Calendar field, Payables determines due dates for scheduled payments by using a special calendar. A special calendar is divided into periods, and each period has a due date assigned to it. When you assign due dates to the periods of a payment terms calendar, you can avoid weekends, holidays, and so on. You can define special calendars for payment terms in the Special Calendar window.
Note: If you use calendar–based terms, be sure to use calendars with periods defined for any invoice terms date that you will use. You cannot assign calendar–based terms in the Invoices window if there is not a period defined for the terms date. If you do so in the Invoice Gateway, then the system will use the terms date as the due date. If you do so for an expense report, you cannot import it.

3.2 Fixed Date Specific month, day, and year on which payment terms are due.

3.3 Days Payables adds this number of days to the invoice terms date to determine the due or discount date on your scheduled payment line. You cannot enter values in the Day of Month and Months Ahead fields for a payment terms line if you enter a value in this field.

3.4 Day of Month/Months Ahead
Day of Month. Payables uses the value you enter here to calculate a due or discount date for a scheduled payment. For example, enter 15 to have Payables schedule payment for the 15th day of the month. Enter 31 if you want to have Payables schedule payment for the final day of the month, including months with less than 31 days.

Months Ahead. For Day of Month type terms only. Payables uses the value you enter here in conjunction with the Cutoff Day you enter to calculate the due or discount date of a scheduled payment line. If you enter zero in this field and the terms date of an invoice is the same as or later than the Cutoff Day, then Payables uses the day in the Day of Month field for the next month as the due date of an invoice payment line. If you enter 1 in this field, Payables uses one month beyond the next month as the due date.

You cannot enter a value in this field if you enter a value in the Due Days field.

4.1 % Discount Payables uses the percentage you enter here to calculate the discount amount available for a scheduled payment. Payables multiplies this percentage with the amount due on the scheduled payment line to determine the discount amount available on the scheduled payment line. In the Second and Third Discount regions, you can enter second and third discount percentages for discounts available if you miss the first discount date. Do not enter a value in this field if there is no discount available.