Reminder: Early payment discounts are only available to customers connected to Datev Duo.
What are invoice Payment Terms?
Invoice payment terms are contractual agreements between a buyer and a seller that outline the timeline and conditions for the payment of invoices. These terms specify the period (such as net 14, net 30) in which buyers are expected to pay their invoices and may include incentives for early payment or penalties for late payment.
Why do invoice Payment Terms matter?
By adhering to the agreed-upon payment terms, companies avoid the pitfalls of late payments, which can lead to strained relationships with suppliers. This, in turn, may result in less favourable terms in future purchases. Additionally, late payments may incur fees or penalties.
Defining default Payment terms for your suppliers
In recurring business relationships, payment terms are likely to remain constant, meaning, the same terms are usually applied from one invoice to another. By establishing default payment terms for your suppliers in Moss, you can further automate invoice due dates, ensuring suppliers are always paid consistently and on time. 💸
What are early payment discounts (skonto)?
Early payment discounts, or skonto, are incentives offered by suppliers allowing buyers to reduce the invoice amount if payment is made within a specific period / before the net due date. They are typically calculated as a percentage of the value of the goods and services purchased.
Using Moss to automate invoice due dates and payment discounts
In recurring business relationships, the same terms are usually applied from one invoice to another.
By establishing default payment terms for your suppliers in Moss, you can automatically define the due date and early payment discounts (skonto) for your invoices, ensuring you not only adhere to but also get the best out of supplier payment terms.
In the absence of default payment terms from the supplier, Moss will determine the due date of your invoice based on the information extracted from the document.
How to create payment terms in Moss
There are multiple ways to create a payment term. You can either choose to add them manually or import your payment terms using a CSV file.
Create payment terms manually
Go to ‘Settings’ using the left navigation bar.
Then, still in the navigation bar, go to ‘Accounting’.
Click on ‘Payment terms’.
Once on the Payment terms page, click the green ‘+Add/Import’ button.
Then, enter the number of days that will define the payment period or ‘Net due date’.
Provide a brief ‘Description’.
Set the ‘Number’ as your payment term’s unique identifier.
Finally, click ‘Add’.
Your new payment term is good to go 👍
Import payment terms using a CSV file
Go to ‘Settings’ using the left navigation bar.
Then, still in the navigation bar, go to ‘Accounting’.
Click on ‘Payment terms’.
Once on the Payment terms page, click the green ‘+Add/Import’ button.
Then, download the CSV template and ensure your payment terms file is correctly formatted:
Column A: Number
Column B: Description
Column C: Due date
Once your CSV file is in the correct format, upload your payment terms in the CSV you just created.
Finally, click ‘Import payment terms’ to complete the process.
Your new payment terms are good to go ✅
How to define default payment terms for your suppliers
By choosing default payment terms for your suppliers, you are able to further automate your invoice due dates. To define default payment terms for your suppliers in Moss:
Go to the ‘Settings’ tab using the left navigation bar.
Next, in the same navigation bar, go to ‘Accounting’.
Click on ‘Suppliers’.
Open the relevant supplier.
Scroll down to the ‘Payment details’ section.
Select the appropriate ‘Payment term’ agreed with your supplier.
Finally, save the changes for the supplier.
Once you have chosen a default payment term for a supplier, it will automatically apply to all invoices you receive from this supplier and be used to define the relevant due date. However, rest assured, you will be able to modify both the invoice payment terms as well as the due date, in case exceptions apply.
You are all set 👍- the selected payment terms will be applied to all future invoices of this supplier.
How are payment terms applied to incoming invoices
Whenever an invoice is created and the selected supplier has default payment terms in Moss, these terms will be used to automatically calculate the invoice due date. For example, if the invoice date is April 30, 2024, and the payment terms are 14 days, then:
Net due date will be May 14, 2024.
Discount date will be May 7, 2024 and the applicable discount percentage will be 1%.
If the selected supplier doesn't have default payment terms, you can manually select them in the payment details section of your invoice. After you select the appropriate payment terms, ensure you save them as default to have them applied to all future invoices from this supplier.
Note: In the absence of default payment terms from the supplier, Moss will determine the due date of your invoice based on the information extracted from the document.
