Overview

Efficient payment management is key to healthy cash flow. iVendNext lets you set up payment terms and templates to automate schedules. This article shows you how to create, manage, and apply them for smoother operations.

1. What are Payment Terms?

Payment terms are predefined conditions that dictate when and how payments should be made for goods or services. They are essential for managing cash flow, reducing payment delays, and maintaining healthy business relationships. In iVendNext, payment terms can be applied to various documents such as:

• Sales Invoices

• Purchase Invoices

• Sales Orders

• Purchase Orders

• Quotations

For example, a business might set a payment term where 50% of the payment is due upon shipping and the remaining 50% upon delivery. iVendNext allows you to define these terms and automatically apply them to transactions, ensuring consistency and accuracy.

2. How to Create Payment Terms in iVendNext

Creating payment terms in iVendNext is a straightforward process. Follow these steps to define your payment terms:

Step 1: Access the Payment Terms Section

1. Navigate to Home > Accounting > Accounting Masters > Payment Term.

2. Click on New to create a new payment term.

Step 2: Define the Payment Term

1. Name: Enter a name for the payment term (e.g., "50% Post-Shipment").

2. Invoice Portion: Specify the portion of the invoice amount this term applies to. For example, enter 50 for 50% of the invoice amount.

3. Due Date Based On: Choose how the due date will be calculated:

• Days after invoice date: Due date is calculated based on the invoice date.

• Days after the end of the invoice month: Due date is calculated from the last day of the invoice month.

• Months after the end of the invoice month: Due date is calculated in months from the last day of the invoice month.

4. Credit Days: Enter the number of days or months allowed for payment. For example, if the due date is 30 days after the invoice date, enter 30.

5. Description: Add a brief description of the payment term (optional).

Step 3: Save the Payment Term

Once all fields are filled, click Save to store the payment term. You can now use this term in your sales and purchase transactions.

3. What are Payment Terms Templates?

Payment terms templates allow you to combine multiple payment terms into a single template, making it easier to apply complex payment schedules in transactions. For example, if your business requires payments in multiple installments (e.g., 30% upfront, 40% on delivery, and 30% after 30 days), you can create a template that includes all these terms.

4. How to Create Payment Terms Templates

Creating a payment terms template in iVendNext is simple. Follow these steps:

Step 1: Access the Payment Terms Template Section

1. Navigate to Home > Accounting > Accounting Masters > Payment Terms Template.

2. Click on New to create a new template.

Step 2: Define the Template

1. Name: Enter a name for the template (e.g., "30-40-30 Payment Plan").

2. Payment Terms Table: Add the payment terms you created earlier to the table. For example:

• 30% upfront

• 40% on delivery

• 30% after 30 days

3. Ensure the total Invoice Portion adds up to 100%.

Step 3: Save the Template

Once all terms are added, click Save to store the template. You can now apply this template to your sales and purchase transactions.

5. Applying Payment Terms and Templates in Transactions

Once payment terms and templates are created, they can be applied to various documents in iVendNext. Here’s how:

5.1 Applying Payment Terms

• When creating a Sales Order, Purchase Order, Sales Invoice, or Purchase Invoice, select the appropriate payment term from the dropdown menu.

• The payment schedule will be automatically generated based on the selected term.

5.2 Applying Payment Terms Templates

• In the same documents, you can select a payment terms template instead of individual terms.

• The template will populate the payment schedule with all the included terms, ensuring consistency across transactions.

6. Benefits of Using Payment Terms and Templates

Using payment terms and templates in iVendNext offers several advantages:

1. Consistency: Ensures that payment schedules are applied uniformly across all transactions.

2. Automation: Automatically generates payment schedules, reducing manual errors.

3. Flexibility: Allows businesses to define custom payment plans tailored to their needs.

4. Efficiency: Saves time by reusing templates for recurring payment schedules.

7. Tips for Effective Use of Payment Terms and Templates

• Standardize Common Terms: Create templates for frequently used payment schedules to save time.

• Monitor Due Dates: Use iVendNext’s reminders and alerts to track upcoming payments.

• Review and Update: Regularly review your payment terms and templates to ensure they align with your business needs.