Set Up Payment Terms for Suppliers
- Security:Set Up: Supplier Accountsdomain in the Supplier Accounts functional area.
You can create customized payment terms for suppliers to procure goods and services and
apply them on procurement documents.
Workday supplies these payment terms:
- 2% 10, Net 30: Suppliers pay the invoice within 10 days of the invoice date to avail of a 2% discount. Otherwise, they pay the full amount within 30 days of the invoice date with no discount.
- Immediate: Suppliers must pay the invoice upon receipt of the product or service.
- Net 10: Suppliers must pay the invoice within 10 days of the invoice date.
- Net 30: Suppliers must pay the invoice with Due date is 30 days after the invoice date.
- Access theMaintain Payment Termstask.
- As you complete thePayment Term Detailsection, consider:
Option Description Discount PercentEnter the discount percentage Workday should apply when you receive payment.Discount DaysEnter the number of days from the invoice date that Workday will apply the discount percentage. This enables you to reward early payments.Grace DaysTo include a grace period before payments are officially late, enter the number of days after the due date that it applies.Cut-off DayEnter the number of days from the invoice date that you want Workday to apply a cut off to a due date rule.Rule Type- Add Days: Enter the number of days after the invoice date that payment is due.
- Add Months: Enter the number of months after the invoice date that payment is due. You can also specify a day of the month that payments are always due.
Apply Cut-offTo select this check box, enter a number on the Cut-off Day field. - You can test the due date rules using theDue Date Rule Simulatorby selecting aTransaction Dateand clickingCalculate Due Date.