Efficiently Managing Payments with Empress Payment Terms

Guides & Tutorials
1

Introduction

Welcome to the Payment Terms guide for Empress. This feature is designed to help you set up and manage your payment schedules effectively. It is an integral part of our accounting tools, helping you streamline your financial processes.

What are Payment Terms?

Payment Terms are a set of rules that define how and when you will receive payments from your clients. They can specify payment amounts, such as a 50% payment upon shipping and the remaining 50% upon delivery. Once your business’s payment terms are saved in Empress, they can be applied to all documents throughout the sales/purchase cycle.

These terms can be used in a variety of documents, including:

  • Sales Invoice
  • Purchase Invoice
  • Sales Order
  • Purchase Order
  • Quotation

You can locate the Payment Term feature by following this path:

Home > Accounting > Accounting Masters > Payment Term

How to Create a Payment Term

Creating a Payment Term is a straightforward process. Here’s a step-by-step guide:

  1. Navigate to the Payment Term list and click on New.
  2. Name your Payment Term (e.g., 50% post-shipment).
  3. Define the Invoice portion. If you enter 50, the portion will be 50% of the Invoice amount.
  4. Select a Due Date type.
  5. In the Credit Days section, specify how many days after the invoice date the remaining amount should be paid.
  6. Click Save.

Here’s a quick rundown of the fields you need to fill in:

  • Payment Term Name: The name of this Payment Term.
  • Due Date Based On: This determines how the due date is calculated. It can be based on the invoice date or the end of the invoice month.
  • Invoice Portion: This is the percentage of the total invoice amount that this Payment Term covers.
  • Credit Days: This specifies the credit period (i.e., the number of days after the invoice date when the remaining amount is due).
  • Description: (Optional) Here, you can add a short description of the Payment Term.

Discount on Early Payments

With Empress, you can set up discounted payment terms. If a payment is made within a specified period, a certain amount or percentage of the invoice value will be discounted.

After linking the Payment Terms with an Invoice, the discount will be applied automatically when the payment is created against such invoice.

Note: This discount is only applied on a Payment Entry that is made from an individual invoice. Independently made Payment Entries, where invoice references are fetched, will not have any early payment discount applied.

Payment Terms in Converted Documents

When you convert or copy documents in the sales/purchase cycle, the attached Payment Term(s) will be copied over. When creating a Sales Order from a Quotation, the Due Date in the Payment Terms will be according to the Quotation, this needs to be updated.

You can also set a Payment Terms Template and simply reselect it for ease of use.

Adding Payment Terms To Documents

Once you’ve created the Payment Terms Template, you can use them in your sales and purchase transactions. Based on the value defined for Payment Terms and the transaction value, the payment schedule will be defined, and a Due Date will be set for each payment slab.

Note: You can display the Payment Schedule in the Print View using the Print Format Builder.

Conclusion

The Payment Terms feature in Empress enhances your business processes by providing a systematic and streamlined method to manage your payments. With its user-friendly interface and practical applications, it can be easily integrated into your everyday business operations. For further assistance or resources, please refer to our non-technical support or additional guides.