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Understanding Payment Terms Template in VinAR-ERP

A Payment Terms Template is a predefined set of payment conditions that helps businesses manage installment-based payments. It groups multiple Payment Terms together and applies them automatically in sales and purchase transactions.

Why Use a Payment Terms Template?

  • Ensures consistent payment schedules across transactions.
  • Saves time by automating payment conditions for customers and suppliers.
  • Helps in managing cash flow by defining structured payment plans.

How Does It Work?

Once created, a Payment Terms Template can be assigned to a Customer or Supplier. When you select that Customer/Supplier in a sales or purchase document, the template is automatically applied.

Example Scenario

If a company follows a 30-70 payment structure, meaning:

  • 30% payment upfront
  • 70% payment later

You can create a Payment Terms Template that includes both percentages, ensuring that every transaction follows the same structure.

How to Create a Payment Terms Template

Before setting up a Payment Terms Template, make sure Payment Terms are already created.

Steps to Create a Payment Terms Template:

  1. Go to Payment Terms Template and click New.
  2. Enter a name for the template (e.g., "Standard 30-70 Payment Terms").
  3. Add the relevant Payment Terms in the table.
  4. Ensure that the total invoice portion adds up to 100%.
  5. Click Save.

Automated Payment Allocation (Optional Feature)

If "Allocate Payment Based on Payment Terms" is enabled, the system will automatically split payments according to the defined terms when processing invoices.

For example:

  1. A sales invoice is created using a template with 30% upfront and 70% later.
  2. When a payment is made, the system will allocate it according to the terms.

This feature ensures payments are recorded against the correct portion of an invoice, making financial management easier.

Key Benefits of Using Payment Terms Templates

✅ Saves time by applying standard payment schedules automatically.
✅ Reduces errors in manual payment tracking.
✅ Improves cash flow management by structuring payments systematically.
✅ Enhances transparency in financial transactions.

By using Payment Terms Templates, businesses can efficiently manage payments, ensuring clarity and consistency across all financial dealings.

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