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Payment terms are used by the JD Edwards Enterprise One Accounts Payable and Accounts Receivable systems to specify a payment due date and, optionally, a discount percent and discount due date.

Payment terms enable you to enter invoices and vouchers more efficiently because the system calculates the due dates and discounts for you.

The JD Edwards Enterprise One Accounts Payable and Accounts Receivable systems use the same payment terms; payment terms are not system specific.

You can use a blank payment term code for the most commonly used payment term, but you should also set up that payment term with a code to use as an override, especially if you use a nonblank default payment term on the customer or supplier record.

Providing a small cash discount would be beneficial for the seller as it would allow him to have access to the cash sooner.

The sooner a seller receives the cash, the earlier he can put the money back into the business to buy more supplies and/or grow the company further.

1%/10 net 30 represents the credit terms and payment requirements outlined by a seller.

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Although the numbers are always interchangeable across vendors, the standard structure for offering a payment discount is the same.

The first number will always be the percentage discount.

This figure will indicate the total percentage discount on the invoice prior to shipping or taxes that may be discounted upon early payment.

The second number is the always the number of days of the discount period.