Paying Contractors According to Payment Terms

Contractors (payees with a tax type of Contractor) can be paid according to payment terms. Payment terms allow the payment of contractors' timesheet to be deferred until a payment terms due date has been reached.

Normally an interpreted timesheet is included in a pay batch if the timesheet end date falls within the date range of the current (open) pay period or, for adjustment pays, the date range of the adjustment period. If a timesheet is subject to payment terms, the timesheet will only be included in a pay batch if the payment terms due date falls within the current period of the pay batch.

For example, consider a scenario where the pay period cycle is weekly, a timesheet is for the work period 13/02/2022 - 19/02/2022 and the payment terms apply a payment offset of 28 days from the pay period end date. In that scenario, the payment terms due date would be 19/03/2022 (i.e. 28 days after 13/02/2022) and therefore the timesheet will not be paid until the period 13/03/2022 - 19/03/2022.

A timesheet that is subject to payment terms is never paid in the current period to which the timesheet corresponds based on its timesheet end date and therefore the timesheet can only be paid in:

• an adjustment pay batch for the adjustment period into which the timesheet end date falls

• a normal pay batch for a pay group that has the Include Prior Period Timesheets in Current Period option enabled.

In either case, the timesheet will not be included in the pay batch unless the payment terms dues date is within the current (open) pay period.

To pay a contractor according to payment terms, the following is required:

• the relevant payment terms must be configured in Terms Maintenance

• the relevant payment terms option must be selected in the Contractor Payment Terms field in the Contractor Tax Details section of the Payee Entry screen.