Pay/Bill Payment Terms Maintenance

The Maintenance > Global > Pay/Bill Payment Terms Maintenance area in FastTrack360 is used to configure the following:

payment terms - these define the offset that is applied to the payment of contractors who are subject to payment terms.
billing terms (also known as invoice terms) - these define the due date of an invoice relative to the invoice date.

Each of these term types is described in more detail below.

Payment Terms

As contractors are a supplier of services to the agency, a contractor may have payment terms as to when they expect to be paid by which they will agree with the agency.

Payment terms that are configured in Terms Maintenance can be assigned to a contractor via the Payment Terms field on the Payee Entry screen and in the pay company default settings.

To configure a set of payment terms you must specify the following:

the name of the payment terms, as it will appear in the list of options that are available in the Payment Terms field on the Payee record and in the Pay Company default settings
the payroll country to which the terms apply
the from date type, which determines the point of time from which the payment offset is to be applied (for more information, see From Date Type below)
the number of days by which the payment of a contractor’s timesheet is to be offset relative to the point in time identified by the from date type.

From Date Type

The from date type identifies the point in time from which the payment of a timesheet is offset. The table below lists and describes the options that are available.

From Date Type Option	Description

From Date Type Option	Description
Pay Period End Date	Applies a payment offset based on X number of days from the end date of the pay period in which the timesheet would normally be paid. For example, if the timesheet falls into a pay period that ends on 12/02/2022 and the number of days offset is 28 days, the resulting payment terms due date of the timesheet is 12/03/2022 (i.e. 28 days after 12/02/2022).
End of the Following Month from Pay Period End Date	Applies a payment offset based on X number of days from the end of the month that follows the month in which the end date of the pay period, in which the timesheet would normally be paid, falls. For example, if the timesheet falls into a pay period that ends on 12/02/2022 and the number of days offset is 0 days, the resulting payment terms due date of the timesheet is 31/03/2022 (i.e. last calendar day of March 2022 plus zero days).
Day of the Month Following Period End Date	Applies a payment offset based on a specific calendar day number in the month that follows the month in which the end date of the pay period, in which the timesheet would normally be paid, falls. For example, if the timesheet falls into a pay period that ends on 12/02/2022 and the number of days offset is 20 days, the resulting payment terms due date of the timesheet is 20/03/2022 (i.e. the 20th day of March 2022). If the number of days specified exceeds the number of days in the month, this will roll over into the next month.
Pay Period Pay Date	Applies a payment offset based on X number of days from the normal pay date of the pay period to which the timesheet corresponds. For example, if the timesheet falls into a pay period that has a normal pay date of 16/02/2022 and the number of days offset is 28, the resulting payment terms due date of the timesheet is 16/03/2022 (i.e. 28 days after 16/02/2022). This option is available for the United Kingdom only. The normal pay date refers to the expected pay date for the pay period, to which the timesheet belongs, as defined in Pay Group Maintenance.

For countries other than the United Kingdom, a timesheet that is subject to payment terms will be included and paid in a pay batch if the timesheet payment terms due date falls within the pay period start and end dates.

For the United Kingdom, a timesheet that is subject to payment terms will be included and paid in a pay batch if the timesheet payment terms due date falls on or before the pay period normal pay date.

Billing Terms

Billing terms determine the payment terms that are printed on an invoice or credit note when it is issued. They inform the debtor of the payment due date based on the issue date of the invoice/credit note.

To create invoices/credit notes from the Billing module at least one billing term record must be created for each type of invoice/credit note that can be generated. The relevant billing terms that apply when an invoice/credit note is issued to a given debtor are defined in the invoice details on the debtor record. Therefore, the billing terms that are to apply to a debtor must be created before the debtor record is created.

When a billing term record is created it is assigned to a country and therefore can only be used by debtor records that are assigned to the same country. However, separate identical invoice terms records can be created for multiple countries.

Each billing term record defines the type of invoice/credit note to which it applies. It also defines the number of days within which payment is due. This can be defined relative to the invoice/credit note issue date or the end of the calendar month during which the invoice/credit note is issued.

Each billing term record has a validity period, defined by a start and end date respectively, which determines the period of time during which the record is valid. This allows different invoice terms to apply during different periods. The end date of the validity period can remain unspecified if the billing terms are to remain valid indefinitely.

See also