Term of Payment

Hi all,

I have a question and I hope everyone answer it

I have to set up vendor for work center group but I dont know the meaning of Term of Payment. In setup of Term of Payment form, I have to declare in the Payment method check box. Can you explain the meaning of the every one in the list. For example, when i choose Curr.mth. The meaning is I have to pay at the end of every month? What happen If I choose Net and specify payment schedule? And what does meaning of payment day?

Thanks in advance

How about reading the help or the manual?

Terms of Payment - this will calcualte the due date, you define the calculation and you are looking at suggested data. The current month would suggest you pay it at the end of the month, this depends upon the payment proposal running however.

Payment Schedules are used to pay invoices in installments.

Payment Day - The payment day is used in the calculation of the due date. The due date is always rounded up to the nearest specified date. The payment day can be specified for a specific day of the week or month.

In help menu of AX, the program give out an example that is showed below and that is refer to Term of Payment form

You set up a purchase budget for a vendor group and budget a purchase of 10,000 for June 15. You then specify current month + 30 days for the terms of payment. The cash flow forecast then shows that payment for the budgeted purchase of 10,000 is due on July 30.

How the program calculate that result. If I calculate, my result is July 15?

Please help me to answer above question

Thanks in advance

OK, I found out the answer from Adamroue, Sorry because I’m not read the answer clearly.

The current month would suggest you pay it at the end of month.

Thanks you so much, AdamRoue

I hope I can read your answer everyday


I couldn’t see the effect of “Payment schedules”. Say my payment schedule is 6 installments i.e. monthly, attached it to terms of payment and then the terms of payment to my supplier.

When I’m posting the invoice for 6000…I’m not seeing 6 transactions with 6 different dates… or is there any other place that i can see the effect?

worked on this very long back and couldn’t recollect whether any setup is required. Could you please point me.

Hi Santosh

Are you posting it from the sales order and have checked the schedule is defined, I think from the invoice (?) tab there is a payment schedule option and you can see and amend it in there. There is also a configuration key from memory. Never set it up myself however.

Hi Adam,

I’m working on from AP. After spending efforts, I realized that it’s working with Purchase invoice but it doesn’t work in the Vendor Invoice journal.

But I’m not convinced why it’s not working on vendor invoice journals. surprisingly, we do not have “payment schedule” field in vendinv journal.

Though it can still work out with the terms of payment and the payment schedule that is attached to it.

What do you think?.

I believe the functionality was only written on purchase and sales invoices, you start with the journals and you have no option for schedules.

But as we are linking the payment schedule to terms of payment, still it can work out on that basis.

Not having the provision of installments when it is direct Vendor invoice, doesn’t make business sense at all. Also, I dont see any complex work for MS to apply the same to Vendor Invoice journals.


I’ve a query for you. If we would like to log a bug in the product, is there any way?(not as support request). Also, if any problems that need to be reported, what is the platform?

I was not saying I agreed, just how it looked like it was written.

This would be a product enhancement, and Microsoft have the connect tool for product suggestions (http://connect.microsoft.com/dynamicssuggestions), but in reality we don’t know if it is a bug, intended design or we are missing the functionality. Your alternatives are the official community, communities like this. I would log it as a support call, that is how problems are reported, there is also a partner portal, but it is the same but slower.

Hi Santosh,

I will not term it as bug. Bug is something where functionality is not working as per specification. If required we can enhance the product by calling payment schedule on journal line. All payment schedule do is the transaction reorganizing process based on due dates as per schedule.

Your point is indeed valid, because we are ultimately invoicing vendor and there can be business scenario where payment schedule will be required.

You can suggest this in product enhancement.


@Adam & Pranav - Thanks both, my intention was not to say that it’s a bug. Just wanted to know if we want to report the bugs where should we do?

Adam - Thanks for the link, it’s a good platform for suggestions.