Use net payment terms to specify the due date of a payment by adding a number of days to the invoice date. For example, if the payment terms are Net 30 and the invoice is dated July 1, then Kenandy calculates the due date as July 31.

In addition to specifying the net payment terms, you can specify an early payment discount to motivate customers to pay sooner. For example, 2% off the total invoice if payment is received within 10 days instead of paying the full amount in 30 days. Kenandy multiplies the gross amount by the discount percent to calculate the invoice amount.

Early Payment Discount: 2/10 Net 30

Field	Description
Payment Term	2% 10 Net 30 If payment is received within 10 days, there is a 2% discount. Otherwise payment is due 30 days after the invoice date.
Discount Days	To be eligible for the discount, the payment must be received on or before the discount day, which is calculated as follows: Invoice date + Discount days = Discount Day
Due Days	Number of days from delivery of goods or services until the payment is due. For example, 30 days after the invoice date.

Use fixed payment terms when you want to specify a due date of the month instead of using the invoice date. Kenandy calculates the invoice payment due date based on the due date of each month, the cutoff date of each month, and the number of months ahead that the payment is due.

• Example 1: An invoice is dated January 1st, the due date is the 10th of each month, the cutoff date is the 25th of each month, and the number of months ahead is set to 0; in this case, the invoice is due for payment on January 10th.
• Example 2: An invoice is dated January 26th, the due date is the 10th of each month, the cutoff date is the 25th of each month, and the number of months ahead is set to 0; in this case, the invoice is due for payment on February 10th.
• Example 3: An invoice is dated January 1st, the due date is the 10th of each month, the cutoff date is the 25th of each month, and the number of months ahead is set to 1; in this case, the invoice is due for payment on February 10th.

The chart below lists more examples:

Fixed Payment Terms Examples

Invoice Date	Cut Off Day	Day of Month	Months Ahead	Final Payment Due Date
Jan 1	25	10	0	Jan 10
Jan 1	25	10	1	Feb 10
Jan 1	25	10	2	Mar 10
Jan 8	25	10	0	Jan 10
Jan 8	25	10	1	Feb 10
Jan 10	25	10	0	Feb 10
Jan 11	25	10	0	Feb 10
Jan 25	25	10	0	Feb 10
Jan 26	25	10	0	Feb 10
Jan 26	25	10	1	Mar 10
Jan 26	25	10	2	Apr 10
Jan 31	31	10	0	Feb 10*
Jan 31	31	10	1	Feb 10*
Jan 31	31	10	2	Mar 10
Other Examples Based on the Cut Off Day and Due Day's Relation to the Invoice Date
Invoice Date	Cut Off Day	Day of Month	Months Ahead	Final Payment Due Date
Jan 5	4	3	0	Feb 3
Jan 5	5	3	0	Feb 3
Jan 5	10	3	0	Feb 3
Jan 5	4	5	1	Feb 5
Jan 5	5	5	0	Feb 5
Jan 5	10	5	0	Feb 5
Jan 5	4	25	1	Feb 25
Jan 5	10	25	0	Jan 25

Note: A scenario exists where you might have the same payment due date for an invoice regardless of how you have set the Months Ahead field. The reason for this is that two rules apply when Kenandy calculates the invoice due date based on the specified number of months ahead:

Months Ahead Calculation Rules

Rule	Example
If the Invoice Date is greater than the Cut Off Day, then Kenandy adds an extra month to Months Ahead.	Invoice Date = January 31 Cut Off Day = 25 Due Day of Month = 10 Months Ahead = 0 In this case, the invoice date is greater than the cut off day, so the due date is February 10.
The payment due date can never be less than or equal to invoice date.	Invoice Date = January 31 Cut Off Day = 31 Due Day of Month = 10 Months Ahead = 0 In this case, the invoice date is not greater than the cut off day, so the due date is calculated as January 10. However, as the payment due date can never be less than or equal to the invoice date, Kenandy adds an extra month. So, the due date is calculated as February 10.

1. From the Payment Terms page, click New.
2. Enter the name of the payment terms.

   You can enter a maximum of 80 characters.

3. Enter a description for the terms.
4. In the Type field, select one of the following as the type of payment terms. Your selection dictates which fields you can use because the types of payment terms are mutually exclusive.
   • Select Due Days to specify the due date of a payment based on the invoice date (net payment terms). When you select this option, you must specify the number of days in the Due Days field. See Step 7 below.
   • Select Due Day of Month to specify a due date of month regardless of the invoice date (fixed payment terms). When you select this option, you enter data in the Day of Month, Cut Off Day, and Months Ahead fields. See Step 8 below.
5. Enter the Discount Percent. This is the percent of the total invoice for which you provide a discount if it is paid within the discount period.
6. Enter the Discount Days. This is the number of days after the invoice date that the invoice must be paid to receive the discount.
7. If you selected Due Days as the type of payment terms, enter the number of Due Days. This is the number of days from the invoice date that payment is due.
8. If you selected Due Day of Month as the type of payment terms, enter the following:
   1. Day of Month: Enter a number from 1-31 for the day of the month that the invoice is due. Enter 31 for the last day of the month, even if the month has fewer than 31 days (for example, February).
   2. Cut Off Day: Enter a number from 1 to 31. Enter 31 for the last day of month, even if the month has fewer than 31 days. If the invoice date is greater than the cut off day, the due date moves to the following month.
   3. Months Ahead: Enter 0 through 12 to set the months ahead of the day of the month that the invoice is due.
9. Click Save.

To apply payment terms to a source document, open the document, and select valid payment terms from the drop-down list. During the lifecycle of the invoice, the Invoice Amount section is updated with information about the payment status. For example, if an early payment discount applies, Kenandy references the payment terms to calculate the discount, and then updates the invoice amount.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Payment Terms Page

Field	Description
Always Take Discount	Discounts are typically offered when a customer pays the invoice by a given date. However, Kenandy provides you with the option to automatically give a discount to specific customers, provided the invoice has discounted payment terms, even if the payment terms have not been met. A check mark indicates that Kenandy will ignore the payment due date and discount the invoice based on the payment terms.
Cut Off Day	Determines the day of the month after which the invoice due date moves to the following month. If the invoice date is greater than the cut off day, then it isn't due for payment until the following month.
Description	A brief description of the payment terms.
Discount Days	The number of days after the invoice date within which the invoice must be paid to receive the discount.
Discount Percent	The discount given if the invoice is paid within the specified discount days.
Day of Month	Specifies the day of the month that the invoice is due.
Due Days	Number of days from the delivery of goods or services until the payment is due.
Months Ahead	Determines the months ahead of the day of the month that the invoice is due. Enter a number between 0 and 12. See the table in the Fixed Payment Terms section above for examples.
Payment Term	The unique name of the payment terms. You can enter a maximum of 80 characters.
Payment Term Unique	(Display only) A system-generated identifier for the payment terms.
Type	This drop-down list enables you to select whether the payment terms are based on the invoice date (net payment terms) or a specific due date of the month (fixed payment terms).