Adagio Tip Of The Month: Payment Terms
Question: In Adagio Receivables, when the payment terms for a customer have been entered, will the system automatically apply the terms if the payment is within the terms specified? For example, terms entered as 2% 10 Net 90 is a 2% discount if the payment is made within 10 days. When I receive the payment and enter it into Adagio within that 10 days, will Adagio automatically discount the invoice being paid by the 2%?
Answer: When a customer has payment Terms that allow for an early payment discount, new invoices for this customer will use that Terms code, unless you choose to change this on the invoice. Posting this invoice will save all the terms information, including the discount date and the percentage.
When a payment is entered for this invoice, if the document date is not later than the discount date, the discount percentage will automatically be calculated for you, and the payment amount applied to the invoice will be reduced by the discount amount.
Here is a link to a short video on how Payment Terms work in Adagio Receivables: https://www.youtube.com/watch?v=Gmh6bIVxHjU
This tip was inspired by a posting on the Softrak Technical Support Forum, where registered Adagio Accounting users can post questions to get answered by Softrak, members of the Adagio Consultant community, and fellow Adagio Accounting users. Be sure to check it out!