AP10 Pay Terms vs Contract Pay Terms

KB 1206094 Best Terms
Description:
How does the Best Terms field on AP00.4 (Company) relate to Invoice Matching (MA) invoices?

Resolution:
If set to Y, Best Terms will attempt to default the payment terms that are most advantageous between those on the PO, those on the invoice, and those tied to the vendor at match time. This will override any manually keyed invoice (AP20.x) terms code if another is found with better payment terms in the defaults available for this vendor, PO, and invoice.

If set to N, system will look at the following for terms default:
1. Invoice manually entered terms code (AP20.x)
2. Terms code from the PO20 (Purchase Order Entry) Header button
3. AP10.6 & AP10.5(Company Code) Company button from AP10.2/AP10.1
4. AP10.2 (Vendor Location) vendor purchase from location terms code
5. AP10.1 (Vendor) vendor terms code

NOTE: AP00.4 (Company) and AP10 (Vendor) have a Terms Calculation field - this field determines if the due date will be calculated from the invoice date, receipt of invoice date, or the po receipt date. For example:

-AP10.1 (Vendor) vendor has terms code Net10
-AP10.2 (Vendor Location) vendor has terms code Net20
-PO20 (Purchase Order Entry) Header button has terms code Net45
-AP20.1 (Basic Invoice) invoice was entered with manually keyed Net30

If AP00.4 Best Terms is Y - the system will add the invoice and pull the Net45 terms code from the po as this is the best terms available. If AP00.4 Best Terms is N - the system will use AP20 manually keyed invoice terms code Net30 per default hierarchy.


KB 1200539 Can you use Payments Terms for Contract type Agreements?
Description:
I am attempting to enter payment terms for a vendor agreement, Contract Type. On the header type specific tab is a field called Payment Terms. I enter the terms here but this isn't being used by the PO20 screen when the line is added to a PO.

Resolution:
Payment Terms will not default to the PO from a Contract Agreement because the Payment Terms are defined at the PO Header and each line on the PO could reference a different Contract. This would ultimately end up conflicting with the Payment Terms on each of the Contracts.


KB 1190579 Why are the payment terms from an agreement not defaulting to the PO?
Description:
Why are the payment terms from an agreement not defaulting to the PO?

Resolution:
There is only one payment term at the header of PO20 so the agreement payment terms can not default as each line could be from a different agreement. If you know that all of the PO Lines will have the same payment term you can override the payment term on the header of PO20 when adding the PO.

Makes one ask why there's a payment terms field in PO25 at all. But they are probably used for blanket or standing type agreements..