Enter Payment Conditions for a Set of Payment Terms

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

1. Open the Sales Contract, Purchase Contract, Service Contract or Freight Contract.
2. Select the set of payment terms. See:
   • Enter a Set of Payment Terms for a Set of Contract Terms
   • Enter a Set of Payment Terms for a Payable Analyte
   • Enter a Set of Payment Terms for a Service or Freight Contract
3. Select the Payment Conditions tab.
4. Right-click in the Payment Conditions table and select New from the menu.
5. Update the payment condition Name if required.
6. Enter the Value Type of the payment condition. Select from:
   • Fixed Amount—A fixed amount, as defined by Percentage/Value.
   • Fixed Percentage—A fixed percentage, as defined by Percentage/Value.
   • Interest Rate Series—The percentage charged for the Basis is the percentage returned from the Interest Rate Series plus the Spread.
   • Fixed Interest Rate—A fixed interest rate, as defined by Percentage/Value.
7. If the Value Type is Fixed Amount or Fixed Percentage, enter the Percentage/Value.
8. If the Value Type is Interest Rate Series, complete the following fields under the Interest Rate Series heading.
   • Charge Type—Type of bonus or charge for the payment condition. Select from:
   • Discount—The payment condition is applied to the invoice only if the invoice instalment due date minus the payment condition interest days reference date is a negative number. If positive, the payment condition is zero.
   • Interest—The payment condition is applied to the invoice only if the invoice instalment due date minus the payment condition interest days reference date is a positive number. If negative, the payment condition is zero.
   • Spread—Interest rate spread associated with the payment condition. The spread is added to the interest rate that is either specified in Percentage/Value, or is obtained from the interest rate series.
   • Basis—Number of days upon which the daily interest rate is calculated from a yearly interest rate. Default: 365 days.
   • Interest Rate Series—Interest rate series to be used to calculate the interest chargeable on payments. Select from the interest rate series defined in the Interest Rate Editor. For multi-maturity interest rate series, only a single maturity period is selected, rather than rates for the whole series.
   • Interest Rate Reference Date—Reference date for the interest rate series. Not applicable if Is Calculated is checked. Select from:
   • Bill of Lading Date—The bill of lading date, or else the first available date out of ATD at origin, ETD at origin or planned despatch date. (Snapshots, revaluations and non-final invoices use the bill of lading date, or else the first available date out of: ATD at origin, ETD at origin, ATA at origin, ETA at origin, the quota end date, or planned despatch date.)
   • Arrival at Destination—The ATA at destination. (Snapshots and revaluations and non-final invoices use the first available date out of: ATA at destination, ETA at destination, estimated arrival based on the travel and duration time of a route that matches the planned loading and unloading locations or quota contractual source and destination, bill of lading date of the despatch order, or planned despatch date of the despatch order.)
   • ETA at Origin—ATA at origin or ETA at origin, or bill of lading date or planned despatch date if no origin can be determined. (Snapshots, revaluations and non-final invoices use the ATA at origin, or else the first available date out of: ETA at origin, bill of lading date, or planned despatch date of the despatch order.)
   • Invoice Date (default)—The invoice date, or else the first available date out of: estimated invoice date, or current date.
   • Previous Invoice Date
   • Previous Payment Date
   • Unload Completion—Actual end unloading, actual start unloading, planned end unloading, or ATA at destination. (Snapshots, revaluations and non-final invoices can use the first available date out of: actual end unloading, actual start unloading, planned end unloading, ATA at destination, ETA at destination, estimated arrival based on the travel and duration time of a route that matches the planned loading and unloading locations or quota contractual source and destination, bill of lading date, or planned despatch date.)
   • Sample Date—The final sample date. (Snapshots, revaluations and non-final invoices use the sample date, or else the first available date out of: bill of lading date, ATD at origin, ETD at origin, ATA at origin, ETA at origin, the quota end date, or planned despatch date.)
   • Departure from Origin—ATD at origin or ETD at origin, or bill of lading date if no origin can be determined. (Snapshots, revaluations and non-final invoices use the first available date out of: ATD at origin, bill of lading date, ETD at origin, ATA at origin, ETA at origin, quota end date, or planned despatch date.)
   • Is Calculated—Whether the interest rate reference date should be calculated instead of using a predefined Interest Rate Reference Date. If checked, select a tested expression or create an expression for the Calc. Expression. See Expressions for Custom Calculations.
   • Cash Discount Method—Cash discount method associated with the payment condition. Select from:
   • CIV—Current Invoice Value
   • CIP—Current Invoice Due Amount
   • PIV—Previous Invoice Value
   • PIP—Previous Invoice Payment
   • FIV_WPC—First Invoice Value Without Payment Conditions
   • PIV_WPC—Previous Invoice Value Without Payment Conditions
   • PIP_WPC—Previous Invoice Payment Without Payment Conditions
   • Exchange Adjustment Required—If checked, exchange adjustment is required for the relevant period. This period is determined as the number of days from the issue date on the payment term to the due date on the instalment. That is:

     (Value or Interest Rate + Spread) * (Instalment Due Date - Payment Condition Date) / Basis (Days)

     Example: If the payment is in AUD, but the invoice is in USD, and exchange adjustment is required because the discount or penalty is applied so many days after the Reference Date. The exchange rate adjustment uses the exchange rate for the payment date.

9. If the Value Type is Fixed Interest Rate, complete the following fields under the Interest Rate Series heading:
   • Percentage/Value
   • Charge Type
   • Spread
   • Basis
   • Cash Discount Method
   • Exchange Adjustment Required
10. If the Value Type is Interest Rate Series or Fixed Interest Rate:
    1. Select the Interest Days Calc Method. Calculation method for the number of days used for interest (or discount) calculations. Select from:
       • Use Reference Date—The number of days is calculated as:

         Instalment Due Date - (Reference Date + Number of Days)

       • Fixed Interest Days—The number of days is a fixed number as specified in the Number Of Days.
    2. If the Interest Days Calc Method is Fixed Interest Days, enter the Number Of Days.
    3. If the Interest Days Calc Method is Use Reference Date, complete the following fields under the Interest Days heading to specify the payment condition date:
       • Early Payment Reference Date—Reference date to use if the interest needs to be calculated from a date that is different from the invoice instalment due date. Select from:
       • None (default)—The number of days is calculated as:

         Instalment Due Date - Payment Condition Date

       • Invoice Date—The number of days is calculated as:

         Invoice Date - Payment Condition Date

       Example: A customer has agreed to pay their provisional invoice as soon as it is issued on the bill of lading date, even though it is really only due 50 days after the bill of lading date. Rather than waiting to have a discount for paying 50 days early applied to the final invoice, the customer wants the discount to be applied to the provisional invoice. This can be set up with the instalment due date set to the invoice date; and a payment condition on the provisional invoice that has a cash discount method of CIV, and the payment condition date set as Reference Date = Bill of Lading and Number of Days = 50. In this scenario, the Early Payment Reference Date should be set to None.

       However, the customer wants the invoice to display the later instalment due date of 50 days after the bill of lading date. The payment condition on the provisional invoice still has a cash discount method of CIV, and the payment condition date set as Reference Date = Bill of Lading and Number of Days = 50; however, the Early Payment Reference Date should be set to Invoice Date.

       • Reference Date—Reference date for calculating the number of days of interest. Select from:
       • Bill of Lading Date
       • Arrival at Destination
       • ETA at Origin
       • Invoice Date
       • Credit Note
       • Debit Note
       • Demurrage Invoice
       • Despatch Invoice
       • Unload Completion
       • Sample Date
       • Departure from Origin
       • Receipt Of Documents—If an actual invoice does not exist with a recorded Receipt Of Documents/Date of Agreement, MineMarket uses the estimated invoice date to determine the instalment due date that displays in the despatch order snapshot.
       • Date of Agreement
       • Number Of Days
       • Exclude Weekend Days—Whether to exclude weekend days (Saturday and Sunday) when determining the number of days for the payment condition.
       • Type Of Days—Type of days to include in counting forward the Number of Days from the Reference Date for the payment condition. Select from Calendar and Business.
       • IsCalculated—Whether the reference date should be calculated instead of using a predefined Interest Rate Reference Date. If checked, select a tested expression or create an expression for the Calc. Expression. See Expressions for Custom Calculations.
       • Calendars—Calendars to use when determining the days to add to the Reference Date.
11. To limit the payment condition to a period relative to the payment condition's reference date, complete the following fields under the Validity heading:
    • Use Validity Days—Whether the Valid Start Day and Valid End Day is used to define the period in which the payment condition is to be applied, relative to the Reference Date set for the payment condition. Multiple payment conditions can be specified with different validity periods so that bonuses and penalties can be based on the number of days after the Reference Date.
    • Valid Start Day—Number of days after the Reference Date that is to be the first day on which to apply the payment condition.
    • Valid End Day—Number of days after the Reference Date that is to be the last day on which to apply the payment condition.
12. If the payment condition is to be applied accumulatively, check Accumulative.
13. Click Save.