Multi-Account Credit Terms Overview

You can use multi-account credit terms when your companies trade with the same vendor and customer accounts. This can help you determine the due date and discounts for sales and payable documents sent to multiple accounts and manage credit terms for multiple companies in one central location. It supports both sales and payable documents and uses the following fields:

  • Base Date 1 – 4
  • Days Offset 1 – 4
  • Description 1 – 4
  • Discount 1 – 4

If you specify multi-account credit terms on a related multiple companies account config record and select the Use Multiple Companies Configuration field in the Accounting Settings custom setting:

  1. The multi-account credit terms are used instead of the related account's or company's credit terms.
  2. The discounts are calculated based on the multi-account credit terms for sales invoices, sales credit notes, payable invoices, and payable credit notes.
  3. The due dates are calculated based on the multi-account credit terms for sales invoices, sales credit notes, payable invoices, and payable credit notes.

This applies to both:

  • Sales and payable documents created from scratch
  • Sales documents created using the Billing Document to Sales Invoice or Credit Note integration

If you select the Use Multiple Companies Configuration custom setting field without creating a related multiple companies account config record or specifying its multi-account credit terms:

  1. The related accounting company's credit terms are used for sales documents instead. If there are no credit terms specified for the related company, then the due date is the same as the invoice date, and no discounts are calculated.
  2. You cannot create payable documents since accounting company's credit terms cannot be used. To create a new payable document, you must specify multi-account credit terms on a related multiple companies account config record.
Note:

If the related company's credit terms are used, the credit terms are retrieved from the accounting company records and not from the Foundations company records when the following conditions are fulfilled:

  • Both the Multiple Companies Configuration feature and the Foundations credit terms are enabled.
  • Either a related multiple companies account config does not exist or has no multi-account credit terms specified.

Prerequisites

To use multi-account credit terms, you must:

  1. Enable the Multiple Companies Configuration feature in the Feature Console. For more information, see Enabling Multiple Companies Configuration.
  2. Select the Use Multiple Companies Configuration field in the Accounting Settings custom setting. For more information, see Accounting Settings.
  3. Create the following records either manually or using Datastream:
    • Multi-account credit terms records
    • Multiple companies account config records, ensuring that the Multi-Account Credit Terms field is populated

For more information, see:

Due Date Calculation

The table below shows examples of how the base date and days offset are used to calculate due dates.

Multi-Account Credit Terms Due Date Calculation
Base Date Days Offset Document Date Calculated Due Date Description
Invoice Date 14 September 20, 2024 October 4, 2024 Due date is 14 days after the document date.
Start of Next Month 5 September 20, 2024 October 6, 2024 Due date is 5 days from the start of the calendar month following the document date.
End of Next Month -5 September 20, 2024 October 26, 2024 Due date is 5 days before the end of the calendar month following the document date.

Multi-Account Credit Terms Example

The following examples illustrate how the multi-account credit terms held for an account or company determine the discount that is applied depending on when an invoice is paid. In each case the invoice date is September 10, 2024.

Example 1 Description 1 Standard Base Date 1 End of Next Month Days Offset 1 0 Discount 1 0.00
Example 2 Description 2 Invoice +10 Base Date 2 Invoice Date Days Offset 2 10 Discount 2 5.00
Example 3 Description 3 Next +15 Base Date 3 Start of Next Month Days Offset 3 15 Discount 3 2.00
Example 4 Description 4 Next + 20 Base Date 4 Start of Next Month Days Offset 4 20 Discount 4 1.00
  • Example 1: If the invoice is paid by October 31, 2024, no discount is applied.
  • Example 2: If the invoice is paid by September 20, 2024, the stated discount is deducted from the goods amount on the invoice.
  • Example 3: If the invoice is paid by October 15, 2024, the stated discount is deducted.
  • Example 4: If the invoice is paid by October 20, 2024, the stated discount is deducted.