Terms—Accounts Payable

Accounts Payable Terms are the rules the vendor establishes for extending credit to you.

For instance, if a vendor is offering you Net 30 terms, you can pay within 30 days without penalties. The terms information helps to recommend payment dates and in some cases, such as 2 percent Net 10, they help can track discounts associated with accounts payable terms. It's not enough, however, just to name the terms, you need to define the mathematics of the terms by creating and maintaining AP term records.

In this section: