Payment Terms UI
This article explains the Payment Terms UI in the Timing modal.
You will learn:
Where to set payment terms.
What the main payment term options mean.
How payment terms feed into receivables, payables and cashflow.
Payment term options
Common options include:
Immediate
Cash and accrual occur in the same period.
No receivable or payable is created.
Fixed number of days
For example 7 days, 14 days, 30 days, 60 days.
The engine converts days into the appropriate period offset based on model granularity.
Fixed number of months
For example 1 month, 2 months, 3 months.
Cash occurs the specified number of periods after accrual.
Custom terms
Can represent more complex business rules through combinations of delay and schedule settings.
These options are chosen via dropdowns and numeric input fields.
How payment terms interact with variables
When you set payment terms for a variable:
The variable's accrual still happens according to its own schedule.
Cashflows are shifted according to the payment terms.
The difference between accrual and cash is recorded as Accounts Receivable or Accounts Payable (or related payables for staff and tax).
This affects both working capital and the Cashflow Statement.
Validating payment terms
To validate payment term configuration:
Use the Timing preview to see how accrual and cash curves differ.
Inspect the Cashflow Statement to see when receipts or payments land.
Check the Balance Sheet for sensible receivable and payable balances.
If numbers look too smooth or too volatile, review the payment term settings.
Best practice
Good practice for payment terms includes:
Matching the terms you set to real contracts or typical behaviour.
Using consistent defaults for similar customers or suppliers.
Documenting any unusual terms in variable notes.
Avoiding unnecessary complexity for items where timing has little impact.
This keeps working capital behaviour predictable and easy to explain.
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