You’re offline. This is a read only version of the page.
Grace Periods in Accounts Receivable. We have numerous customers setup with a payment terms of 2 % 10th Net EOM. Grace Period is set to 9. So as long as we receive the check BY the 10th, the system takes the appropriate discount on every single invoice for that customer. We do allow extra time for the mail, so every month we receive their checks by the 14th or 15th of the month, and we still allow the discount. However, once the actual date of the month goes past the 10th, GP will NO LONGER honor any discount. In order for us to post these checks, we have to manually go in to EACH and EVERY invoice they are paying and manually type in the discount amount. As you can imagine, this takes forever and has resulted in much frustration in our AR department. Isn't there a way to set GP up to bypass this extremely manual process ? We are using GP 2013.
*This post is locked for comments
Grace periods are just that - extra days, in addition to the standard setup, which will allow you to extend the discount beyond the normal due date or discount date (one setting for each). It sounds to me like you should enter a 5 day grace period for discount date.
Sorry for any confusion I created - I was simply pointing out that GP systematized taking discounts after deadlines had lapsed when making payments to vendors - but I digress.
You can call your payment Terms pretty much anything you want, then assign settings as you have above. You have selected "Use Customer/Vendor Grace Periods for Date/EOM Payment Terms". The Grace Period for Due Date and Discount Date are maintained separately on the Customer Maintenance Window, so there is quite a bit of flexibility in this setting. Have you entered Grace Periods for the Customer(s) in question?
Setting the Grace Periods allows you to be firm with some customers, while extending some additional time to customers who may be farther away, or who just plain have a better relationship with. I hope this helps, and please feel free to disregard my ramblings about taking expired discounts when cutting checks.
I know this doesn't help you now but GP 2015 offers more flexibility in terms and discount settings. See this blog post - www.erpsoftwareblog.com/.../whats-new-gp-2015-payment-terms-flexibility
So this is a screen shot of our AR payment terms setup for 1% 10th Net EOM
Hey - that worked ! Thank you. So here is the screen shot showing our payment terms setup in AR.
You discussed AR settings in the first sentence then you slipped right into the AP section and stayed there. We have already tried setting the Grace Period in AR to 15. The Grace Period appears to be directly connected to the payment terms in AR. Our Payment terms in AR for the discount is set to Date and it's our understanding it needs to be set to days - but how do we do that when our terms are 2% 10th Net EOM and we invoice daily.
The 10th of the month is a different number of days based on invoice date. Any thoughts ? I wanted to send you a screen shot of our Discount terms setup on the card but was unable to put it in this field.
If your policy is actually the 15th, then set the Grace Period to 15. This should prevent this extremely manual process. There is a setting in GP to take non-qualifying discounts when cutting checks. This is a clear indicator this is standard practice for a lot of companies, so if you're not going to enforce the Grace Period, extending it to the date you actually consider to be a line in the sand makes sense.
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,253
Super User 2024 Season 2
#2
Martin Dráb
230,188
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (