Any trading terms granted to you by your Suppliers, should be recorded on the Terms window. This window can be opened from the Terms function on the Debtor/Creditor ribbon. To change the details, you should press Edit.

The drop-down menu on the Terms window enables you to select the Price Key that you want to give this Supplier. This indicates which set of prices will normally be applied to them.

Prices for stock items are set up in the Stock Control module and referred to as Price Lines. You can enter up to 10 selling prices or buying prices for a product, setting the prices to be fixed, uplifted or discounted by using a price method. Prices can also be defined by the quantity ordered, thus offering price breaks for large orders.

For example: to make a distinction between Wholesale and Retail prices, you could create two price lines, renaming the Price Keys to Wholesale and Retail. Price keys can be renamed from the Price Keys menu option.

Or, to provide an incentive to place larger orders, prices lines can be entered for different quantity ranges. Your Suppliers can be allocated a specific price line by selecting the name of the line from the Price Key menu. The selected price key will then be displayed on the menu bar.

Other options that affect price keys:

If the Price Line option Override default Price Line has been selected in Purchase Orders Options, price line settings from the Terms window may be overridden if a zero price is selected when a stock item is included in an order. In this situation the value from Price Line 1 for that Stock item will be used instead.

If the override option is not selected, zero prices will be allowed in an order line, allowing the purchase of a free stock item.

Clicking this icon will connect you to a Credit Checking web site (as selected in your System Control options) to enable you to action credit checks on your Supplier. If the Company's Registration number has been recorded on the VAT window, it will be transferred to the credit checking service automatically. This feature is controlled by Security Profiles, where access to the Credit Checking facility can be enabled or disabled. If disabled, the icon will not be visible on the window for Users with that profile.

According to HMRC rules, VAT on all invoices should be based on the full price. Suppliers must account for VAT on the amount they actually receive, and Customers can recover the amount of VAT that is actually paid. As such, a Credit Note is automatically generated for any Settlement Discount value and allocated to the invoice and payment so that VAT is correctly accounted without the need for manual adjustments. More information with examples is available; see How To… » VAT on Settlement Discounts.

A selection of discounts can be entered from Suppliers. The system calculates discounts as a percentage; you may overwrite the calculated discount amount on an order with any other cash amount. Line and Total Discounts are applied to the net amount before calculation of VAT.

Total Discount - is deducted from the order total, after any line discount has been deducted.

Line Discount - is deducted from the buying price on each detail line on an individual basis.

Settlement Discount - is a discount allowed for payment of an invoice within the number of days specified. Line 1 must have a higher % and lower number of days than line 2. The settlement discount terms and amount are printed on purchase invoices.

If an entry is made in either field, Fixed or %of order, the appropriate delivery charges will be added to the invoice. You will be asked to confirm the addition of the delivery charge as you finish and save the order. If an entry is made in both fields, the higher value will be used.

If a credit limit is entered, the system will warn you if a transaction you are entering will exceed the credit limit set on the account. When this warning appears, you have the option to ignore it and to continue taking orders and delivering orders at your discretion.

If an entry is made in this field, the system will display a warning message when processing orders that fall below the minimum value you have specified.

This is used to calculate the transaction required date for the header and detail line when:

If no entry is made in this field, the required date will be calculated using the Normal/Urgent Delivery times as entered in Purchase Order Options. An entry in this field will replace the required date with one calculated using the lead time. The number of days entered can be from 1 to 99999.

This is the number of days credit you anticipate taking from the Supplier and is used for cash flow forecasting; the expected date of payment will be calculated and entered automatically by the Credit Control / Cash Flow module.

Any message entered in the Terms field will be printed on invoices, statements and chase letters. The length of the message that can be entered depends on the fonts being used and on the stationery layout.

This is the number of days credit offered to you by your Supplier. The number of days entered are used to calculate the Due Date on invoices. The method of calculation can be varied by selecting from the Due Days menu bar. The drop-down menu is used to enter the number of days credit you have offered (or been offered), and is used to calculate the Due Date displayed on Purchase Invoices. It indicates when Transactions to this Supplier become Due. Take care when setting this, that you do not enter a figure that will give an invalid Date such as 29 Feb. The smallest value you can enter is one day. You can select: