Payables Payment Terms Functionality

How Payment Terms Work And What Is The Functionality Of Payment Terms When ?

The Payment Terms defined works on three basic fields on which you have entered/defined information.
The below combinations along with Invoice date defaults your Invoice Due Date.
In the Define Payment terms screen

Method 1)
---------
Invoice Date and No of Days entered in Payment term Days field

a) Days

Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date will be 27-Jan-2001. 

It means it calculates no of days from the Invoice date. 

Method 2)
---------
Invoice Date + Cut Off day + Day of month with Months ahead. 

1) Cut-off Day
2) Day of Month with Months ahead

For example :

If you enter Payment Terms like this:
Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st what so ever, 

it calculates from the last day of month.

Day of a month  29
Months ahead    2   ( Two Months)

If invoice is dated 28-Nov-2001, with the above setup you get Due date as 29-Jan-2001 as due date.

It will always calculate from the End of Nov ie 30th Nov and Then it takes Two Months here it gives you always 29th of Second month from Invoice date.

ie

Invoice Date            Due Date

28-Nov-2001             29-Jan-2002
28-Dec-2001             28-Feb-2002
28-Jan-2002             29-Mar-2002

So on and so forth.

Either you give 29th or 30th what so ever, once you give the Day of Month you will get only that day as due date after Months specified in the Months ahead field.

This is how application works and designed to work.

Please refer documentation for the following terms

Cutoff Day.
Days.
Day of Month
Months Ahead.

Further,
In case, you have  two invoice payment terms which you are not able to define in AP and the due dates are not defaulting as expected;

The two terms are:-

(1) 60 DAYS END OF MONTH go to month end and add 60 days
E.G: invoice dated 28 NOV, due date is 29 JAN

(2) 90  DAYS END OF MONTH go to month end and add 90 days
 E.G: invoice dated 28 NOV,  due date is 28 FEB

How would you define these?

The Payment Terms functionality does not support the above example