Table of content
- Steps to Enable Terms of Payment Validation
- How are Terms of Payment calculated?
- Validation of Terms of Payment in 3-Way-Match
Steps to Enable Terms of Payment Validation
1. Go to "Company Configurations" from the "Settings" menu on the sidebar.
2. Click on the "Accounts Payable" tab.
3. Scroll down to the "Bills" section and turn on the toggle for "TOP Validation".
4. Finally click on "Save configuration" at the top right to save the changes.
How are Terms of Payment calculated?
Calculation for PO
Terms of payment for the Purchase Order are calculated as follows:
Terms of Payment = PO Issue Date - Due Date
For example, while creating or editing a purchase order, you have set the "Date" as 1st March and the "Due Date" as 1st June. Then Peakflo will automatically calculate the Terms of payment, which is 92.
Calculation for Bill
When a Bill is created from matched purchase order and receipt note then the Terms of Payment will be equal to the terms of payment of the purchase order.
When Bill is matched with multiple purchase orders then the Terms of Payment will be equal to the longest Terms of Payment of the purchase orders linked to the bill.
Validation of Terms of Payment in 3-Way-Match
When performing a 3-way match, if the Terms of Payment for Bill are greater than the Terms of Payment for PO then the system will show a warning sign.
When a bill has more than one Purchase Order matched and if the Terms of Payment for the Bill are greater than the longest Terms of Payment of the purchase orders linked to the bill then the system will show a warning sign.