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UW Shared Financial System - Purchasing Training

Payment Terms - Most of the time the University of Wisconsin campuses are required to pay an invoice within 30 days. However, sometimes discounts are available if the invoice is paid earlier. For example, a vendor may offer a 10% discount if an invoice is paid in 10 days. SFS allows payments to be scheduled so that they are paid when due and so that any applicable discount is taken. The payment terms appear on the purchase order and so it is important that you understand them.

There are two steps to defining the payment terms: First the payment terms timing must be defined. Next the payment terms must be defined.

Activity: View the payment terms timing that have been created.
Navigation: Go, Define Business Rules, Structure Procurement Options, Use J-R Payment Terms Timing, Update/Display.

Select a Business unit of SHARE and click on OK or press enter. Select the first payment terms timing on the list and move through the list using the "next in list" button.

The next step is to define the payment terms. First let's view what has been set up.

Activity: View Payment Terms
Navigation: Go, Define Business Rules, Structure Procurement Options, Use J-R Payment Terms, Update/Display. Select a Business unit of SHARE and Payment Terms ID of 2/10.

Note that the Payment Terms Timing code defined earlier is used here:

Note that only one discount term is allowed for each payment term ID. The outer scroll bar controls the Effective Date of the payment term. The middle scroll controls Net Terms and Timing and the inner scroll controls the Discount Percent for each term.

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