If you offer an early payment discount or charge late fees or finance charges, you need to set up at least one Terms Code. If Terms Codes are set up with finance charge information, you can automatically generate finance charges when you send an invoice for all customers to which the Terms Code applies.

Set up a Terms Code for each different payment discount or finance charge policy you have. Discounts, such as volume discounts or preferred customer discounts, are set up in the Inventory and Sales modules.

Here are a few things to ask yourself when you plan Terms Codes: