Payment details (customer account)
Find this screen
Open: Sales Ledger > Sales Accounts > New Customer
Open: Sales Ledger > Sales Accounts > Amend Customer
- Use the Payment tab to set the customer's settlement discount, payment terms, and account type.
Payment terms
Account Type
Use the Account type to decide how transactions are stored for this
- The default account type is Open item.
- You can change a
For open item accounts, transactions remain visible on the account until they are
How transactions are archived
Transactions that are fully allocated, and that have exceeded the number of months specified to Keep transactions for, are archived or removed when the relevant Account Maintenance option is run.
- If you have selected to archive your transactions in the Ledger settings
- If you have not chosen to archive your transactions, they are permanently removed from the Sage 200 database.
For example: You have chosen to keep your transactions for 3 months for all of your Accounts. You enter the Archive up to date as 30 November. All allocated transactions dated prior to 01 September are archived or deleted.
All outstanding transactions are kept, regardless of their age. Outstanding transactions are:
- Part allocated payments.
- Disputed transactions.
- Unpaid invoices.
- Part paid invoices.
With Automatic Allocation accounts any credit notes, payments or receipts are allocated to invoices when the relevant Account Maintenance option is run
Any debits or credits that are not allocated are carried over into the new period. If the transaction values do match exactly, the transactions are part-allocated.
How transactions are archived
Transactions that are fully allocated, and that have exceeded the number of months specified to Keep transactions for can be archived or removed.
- If you have selected to archive your transactions in the Ledger settings, the transactions are moved to an archive file. Once archived they can be viewed on the archived transaction enquiry screens and historical reports.
- If you have not chosen to archive your transactions, they are permanently removed from the Sage 200 database.
With Balance Forward accounts, individual transactions are removed and replaced with a brought forward balance for each accounting period. The brought forward balance is created, when the relevant Account Maintenance option is run
Each period's total balance is carried forward as a single balance figure and so the number of balances carried forward depends on the number of accounting periods that you have.
When transactions such as payments are posted for a previous period, they are allocated by period number, so the appropriate balance is amended. Queried transactions are kept on the account.
The advantage of this type of accounting is its economical use of disk space.
Note: Balance forward accounts cannot be used for foreign currency accounts.
Settlement discounts with balance forward accounts
We recommend that you don't use Balance Forward for accounts where you offer a settlement discount. This is because the discount details are lost when individual transactions are replaced with the brought forward balance.
Settlement discount
The settlement discount details you set here will be applied automatically when you enter an invoice, order or credit note for this
When you create a new account, these will default to what you've set in the
- Enter the Settlement discount percentage you offer the
- Enter the number of days that the
Settlement discounts and UK VAT
VAT on an invoice is only discounted when it is paid within the settlement discount period.
On each invoice, VAT is calculated by default on the full invoice value. If the invoice is paid within the settlement discount period, a VAT adjustment is required, to account for the discounted VAT.
Note: In Ireland, VAT is calculated on the full value of the invoice regardless of any settlement discount.
Payment terms
Payment terms are used to calculate the Due Date for an invoice.
When you create a new account, these will default to what you've set in the
- Enter the number of days for the Payment terms (if applicable).
-
Set when the due date is calculated from.
Due date calculations are only made for invoice transactions. Credit notes always retain the same due date as the entered transaction date.
Document dateInvoices are due the specified number of days after the invoice date.
For example, if the Payment terms is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 18/10/2020.
Start of monthInvoices are due the specified number of days after the start of the month in which an invoice is dated.
For example, if the Payment terms is set to 30 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 31/10/2020.
End of monthInvoices are due the specified number of days after the end of the month in which the invoice was dated.
For example, if the Payment terms is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 15/11/2020.
Calendar monthlyInvoices are due on the same day the following month.
For example, if you enter an invoice with an invoice date of 03/10/2020, the due date will be 03/11/2020.