This screen allows you to set the parameters for both overseas creditors and for bills payable. Please bear in mind that you can move the overseas creditors into bills payable if thats how you pay. Based on arrangements with an overseas supplier you might get long-term bills up to 180 days or more.
Prior Months Purchase
To obtain the correct creditors payments, enter the prior month’s purchases in the left-hand block provided. To obtain the correct total for payments the prior Months Purchases must be entered. Enter the purchases including VAT. This is important where the payment parameters percentages require the information to calculate payments correctly.
Percentage Payment
When completing the creditor payment assumptions, it is necessary to enter the terms based on past experience or how creditors are going to be paid so that cash flow can be maintained. E.g., It may be the policy of your business to pay your creditors on a 60-day basis. It may also be your policy to pay some creditors at 30 days and some creditors at 60 days. E.g., It may be necessary to enter 30% in the current area, 50% in the 30-day area and 20% in 60-day area.
