Use fixed payment terms when you want to specify a due date instead of having the system calculate the due date.
For example, if you want all transactions due at the end of the year regardless of when they were entered, enter a due date of December 31, 2006.
In addition to specifying the proximate month and day, you can specify the discount percent and the discount days.
The customer has until June 24 to remit their payment to receive a 1 percent discount; otherwise, the payment is due July 14.
Use proximate date payment terms when you want the transaction due date to be on the same date of the month regardless of the invoice date.
Payment term codes can range from simple to complex, depending on your organization's policies.
You define a payment term by using a one-, two-, or three-character combination of these types of characters: For example, you might use A1%, which combines all three types of characters, for a percentage payment term code.