A payment term or pay term is the amount of time a supplier is allotting for payment of their invoice. In OAKS FIN, the pay term is used to calculate net due date, discount due date, and discount amount calculations.

Some suppliers have an early payment discount options. If a supplier offers early payment discounts, OAKS FIN can calculate the discount based on the pay term and the invoice date.

Possible pay terms

• Net 30 - indicates payment in full due within 30 days of invoice date. Payment after the stated pay term can result in a late fee.
• 2/10 Net 30 - indicates that the supplier grants a 2% discount if paid within 10 days from the invoice date, or if not paid within 10 days, entire balance is due within 30 days.
• Due Now - payment is due immediately. Federal suppliers are paid via the "Due Now" option.

If a PO references a contract or if a debit voucher references a contract, the payment terms will be driven by the terms listed on that contract regardless of the supplier default pay term set in OAKS FIN.