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Description
FastTrack360 now supports the ability to assign payment terms to a contractor so that the payment of their timesheets can be deferred until the payment terms due date, as calculated by the system based on the applicable payment terms, has been reached.
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A proforma remittance can be generated and issued to the contractor when their timesheet is approved and has undergone interpretation as an interim indication of what the contractor will be paid once the payment terms due date is reached and the timesheet is paid. For more information, see Issuing Proforma Remittance Advice. |
Benefits
This enhancement allows payment to a contractor to be deferred until after the client, to whom the contractor has provided services, has paid the invoice for the service that were provided.
Configuration
Before payment terms can be applies to contractors, the different variations of pay terms that can apply must be configured under Maintenance > Terms Maintenance. For more information about how to configure the pay terms, see Terms Maintenance.
Once the required pay terms have been configured in Terms Maintenance, they can be assigned to contractors by selecting the relevant pay terms in the Contractor Payment Terms field in the Contractor/Company Tax Details section of the Payroll > Payee > Payee Entry screen, as shown in the example below.
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The contractor/company tax details on a Payee record are subject to validity periods. Therefore, if payment terms are to be assigned to an existing contractor who has already been paid, a new validity period must be created before the payment terms can be assigned and the payment terms will only take effect from the start of the new validity period. |
Once the required pay terms have been configured in Terms Maintenance, they can be applied as a pay company default so that when new Payee records are added for contractors, the relevant payment terms can be defaulted based on the pay company default settings. To define the default contractor payment terms in the pay company default settings, select the relevant payment terms in the Contractor Payment Terms field on the Payroll > Maintenance > Pay Company > Edit Pay Company > Default Settings screen, as shown in the example below.
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