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Vendor A/P Terms

A guide to updating Vendor Records to defining Due and Cutoff Days, Debit Accounts and Discounts

OverVUE

When the Day Due and Cutoff Day fields are defined, VUE automatically populates the Due Date on the Accounts Payable Invoice entry. 

Due Day and Cutoff Day are defined in the Vendor record under A/P Terms section.

Navigate to Accounting > Accounts Payable > Vendors.  Select a Vendor Record to update.

Vendor Day Due

Vendor Cutoff Day

Vendor Debit Account

Vendor Discount

Print AP Check

Default Payment Method

Vendor Day Due

The Due Day is the day of the month to default as the payable invoice Due Date for the vendor. This day would also be known as the day of the month the payment is due to the Vendor to avoid finance charges or forgoing any agreed upon discounts.

For example, when defined as Day Due = 10, the Due Date field in the Accounts Payable screen, automatically defaults using the 10th day of the following month.

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Vendor Cutoff Day

When Cutoff Day is used, the default invoice Due Date is never in the month the invoice is created. Instead, the invoice Due Date defaults to the Day Due in the next month, then after the Cutoff Day, defaults to the Day Due in the month after the next month.

  • The Cutoff Day should be a day of the month after the Due Day of the month.
  • The Due Date on the vendor’s invoices can be edited.

EXAMPLE

  • When Day Due = 16 and Cutoff Day = 28
  • Invoices created on December 29th through January 28th have a default invoice Due Date of February 16th.
  • Invoices created January 29th through February 28th have the default Due Date of
    March 16th .
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Vendor Debit Account

Use the Debit Account field to assign the General Ledger account most often used to expense (debit) when creating Accounts Payables entries (invoices). This account can be both a natural account or a split account. 

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When a natural account is assigned, it will default in the accounting grid and the total amount if the invoice will automatically be expensed.

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When a split account is set, the total amount of the invoice will be split and applied as per the General Ledger split accounts setups.

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Vendor Discount

A Vendor Record can contain either:

  • Discount, Discount Days, and Net Days

                          OR

  • Day Due and Cutoff Day
  • But not both simultaneously.


Discount refers to a percentage of the total invoice that is eligible for a reduction.


Discount Days signifies the duration in days that the dealership qualifies for a discount if the invoice is settled within the specified number of days from the invoice date.


Net Days indicates the timeframe that the dealership must pay the full invoice amount if the discount days elapse without payment.

Discount Account designates the General Ledger (GL) Account where the discount amount will be posted. 

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Once the vendor's terms have been established in the record, these terms will automatically appear when generating a new invoice for this vendor.

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Note: The discount is not displayed on the Accounts Payable invoice; it will only become visible when
Processing Payment.

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Print AP Check

Check box defaults to On.  It is advisable to leave this checked so you can generate payments as necessary.  Note: Unchecking this block will not allow you to process payment to the Vendor.

Default Payment Method

Use the menu to select the default Payment Method for the Vendor.  Review the Payment Processing documentation to see how this reflects with your Payment runs.

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