The Ledger Lowdown: Get the Discounts You Deserve

Jennifer Maroney — Thu, 14 May 2009 15:22:00 GMT

When you purchase an item using credit or on account, you enter into a contract and agree to pay off the balance by a specific date, which is usually set by the vendor. Sometimes you even get a discount if you pay the balance early. I'm sure you're asking yourself, "What does this have to do with FE?" More than you may know. You can set terms for AP invoices so you get the discounts you deserve and on AR invoices so your customers get the discounts they deserve. These terms are not just used for discounts; they also specify how long a customer can wait to pay an invoice.

The first step is to create the terms in Configuration. This process is the same for AP and AR with one exception: in AP you define the discount you receive from vendors and in AR you define the discounts you offer to your clients.

Now that you have all of your terms created, it's time to add them to records. I recommend defining the terms on the vendor or client record so they default on new invoices. This not only saves time, but ensures each invoice is discounted accurately. On a vendor record, select the default terms on the Vendor tab. On client records, define the default terms on the Defaults tab. That's it! All that is left is to do is collect yo' money and save yo' money .

Talk to you soon!

The Ledger : terms

The Ledger Lowdown: Get the Discounts You Deserve