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Adding, Editing & Deleting Terms in Sales and Distribution

Owned by Aparajita Basu Roy
Last updated: Jun 28, 2022 by Subhasree Banerjee (Unlicensed)
9 min read

Term is a combination of different types of Charges that are applied together in a single Sales document of any customer. Terms need to be defined individually for each trade group. The Charges specified in Sale Terms automatically get populated in the document in which the Sales Term has been tagged.

What is the need for creating Sales Terms?

It is mandatory to tag the Sales Terms during the creation of any invoice, because they are an aggregation of the applicable charges. The following are the uses of Sales Terms:

  • The charges may vary based on Trade Group, Customer, Items etc; so the Sales Terms are created and just selecting the Term allows the user to apply all the charges specified in the Term simultaneously.

  • It also allows for flexibility in applying charges to invoices - if individual charges had to be applied to invoices, there could be errors of omission or wrongful application.

  • Moreover, in case of, any change of payment conditions or any of the charges applicable becoming obsolete for use; the term can simply be made extinct and a new set of charges can be defined.

Creating and tagging a Sales term reduces the margin of possibility for such mistakes. In case of modifications needed in the combination of charges, it would be enough to just modify the Sales Terms. So the Sales Term provide flexibility and ease of use for Charges.

  Add Terms in S&D

The Add button in the Sales Term list view allows the inclusion of new terms into the master list as and when required. On clicking the button, the Add Terms window opens up to include all relevant details of a term. The new record can then be saved and reflected in the master.

Prerequisites

  1. The user's role must have the Add application operation enabled for Procurement > Setup > Invoice Overheads > Terms in Admin > Security > User > Roles .

Step-by-step guide

Following steps are used:

  1. Go to Procurement > Setup > Invoice Overheads > Terms.

  2. Click on the Add button to open the Add Terms window.

The following table shows the Field Names and provides a description of their functionality:

Field Name / PromptField Explanation

GENERAL

Term NameName of the new term to be created
Trade Group

Trade Group to which it will be tagged.

Note: This is a mandatory field, in which the drop down list provides a selection list for the non-extinct trade groups and their descriptions

ACCOUNTS


Dependent Field Descriptions
Sales Ledger

Name of Sales Ledger in which the financial impact related to the particular Term will be reflected.

List will display -

  • Ledger Name
  • Type
  • Nature
  • Sub Ledger Applicability
  • Site Applicable

Conditions of display -

  • Non-extinct Ledgers
  • General type Ledgers

Note: Selection of Ledgers is optional here


If the ledger is sub ledger applicable, then the Sales Sub Ledger field will be visible and then sub ledger selection, from the drop down, is mandatory.

List will display -

  • SLID,
  • Sub Ledger Name,
  • Sales Ledger name

Conditions of display -

  • Sub ledgers belonging to the Sales ledger selected before
  • Non-extinct sub ledgers
Sales Return Ledger

Name of Sales Return Ledger in which the financial impact related to the particular Term will be reflected.

List will display -

  • Ledger Name
  • Type
  • Nature
  • Sub Ledger Applicability
  • Site Applicable

Conditions of display -

  • Non-extinct Ledgers
  • General type Ledgers

Note: Selection of Ledgers is optional here,

If the ledger is sub ledger applicable, then the Sales Return Sub Ledger field will be visible and then sub ledger selection, from the drop down, is mandatory.

List will display -

  • SLID,
  • Sub Ledger Name,
  • Sales Ledger name

Conditions of display -

  • Sub ledgers belonging to the Sales ledger selected before
  • Non-extinct sub ledgers

ITEM CHARGES Tab

Add Row buttonClicking on this button adds a blank row to the end of the last used row. Adding a row is necessary for including multiple charges in the term.
Sequence (Seq.)The sequence of charges to be applied on items for a particular term
Charge

The name of the charge to be applied on items has to be mandatorily selected from a drop down list which would display the following fields -

  • Charge Name,
  • Factor,
  • Rate Source,
  • Chargeability


Conditions -

  • Charge is applicable on each item.
  • In the Item Charges tab, only those charges which are applicable on items will be displayed.
  • Trade Group should either be the same as that specified in this particular Term or must be blank.
  • Same Charge cannot be selected twice.
  • In case of Charges which are Tax Components -
    1. Only 2 such Tax component Charges are allowed per Sales Term, including Document Charges
    2. In case of multiple tax component charges (maximum of 2), source of at least one tax component one must be Excise tariff. The rate source of the other could be picked either Charge Master or Tax Definition of the Item.
Sign

This combo list has only two values denoting if the charge will be added to or subtracted from basic value to get the net value of an invoice.

E.g. Discount must be subtracted but tax must be added.

The positive (plus) or negative (minus) sign is displayed by default as provided in the charge master; user can edit if required.


FactorThis value denotes the percentage or amount by which the charge will be applied

Factor % or Factor Amount -

  • By default the value provided in charge master will get populated, user can edit if required.
  • If nature of the charge is declared in Charge Master as a percentage it will show as a percentage; other wise it will show as a fixed amount.
  • If the charge is declared as a percentage, it has to be ≦ 100
  • Can be zero or Null.
  • Cannot be negative.
BasisThis field shows whether the Factor applied is a % or an AmountThis display field picks the value as provided in the Charge master.
Expression

This is a display field for charge calculation formula.


The expressions may appear as -

        1. B when only the Basic value is used. Basic here means Item Value (Quantity * Rate). 
        2. B + 1 when the amount of charge sequence 1 is added with the Basic value for Item charge.
        3. B-1+2 when the amount of charge sequence 1 is subtracted from the Basic value and the amount of charge sequence 2 is added to it thereafter for Item charge.
        4. 3 when the amount of charge sequence 3 is only considered for building the Expression.


Allow modification in document

The charge may be modified in applied documents if the checkbox given is ticked.


DOCUMENT CHARGES Tab

Add Row buttonClicking on this button adds a blank row to the end of the last used row. Adding a row is necessary for including multiple charges in the term.
Sequence (Seq.)The sequence of charges to be applied on whole document for a particular term.

Charge

The name of the charge to be applied on whole document has to be mandatorily selected from a drop down list which would display the following fields -

  • Charge Name,
  • Factor,
  • Source,
  • Tax



Conditions -

  • Charge is applicable on whole document.
  • In the Document Charges tab, only those charges which are applicable on the entire document will be displayed.
  • Trade Group should either be the same as that specified in this particular Term or must be blank.
  • Same Charge cannot be selected twice.
  • In case of Charges which are Tax Components -
    1. Only 2 such Tax component Charges are allowed per Sales Term, including Item Charges
    2. In case of multiple tax component charges (maximum of 2), at least one must be selected from Excise type. The rate of the other could be picked either from Charge Master or Tax Master.
Sign

This combo list has only two values denoting if the charge will be added to or subtracted from basic value to get the net value of an invoice.

E.g. Discount must be subtracted but tax must be added.

The positive (plus) or negative (minus) sign is displayed by default as provided in the charge master; user can edit if required.


FactorThis value denotes the percentage or amount by which the charge will be applied

Factor % or Factor Amount -

  • By default the value provided in charge master will get populated, user can edit if required.
  • If nature of the charge is declared in Charge Master as a percentage it will show as a percentage; other wise it will show as a fixed amount.
  • If the charge is declared as a percentage, it has to be ≦ 100
  • Can be zero or Null.
  • Cannot be negative.
BasisThis field shows whether the Factor applied is a % or an Amount
This display field picks the value as provided in the Charge master.
Expression

This is a display field for charge calculation formula.


The expressions may appear as -

        1. B when only the Basic value is used. The Basic value is calculated as Item gross value + item charges.
        2. B + 1 when the amount of charge sequence 1 is added with the Basic value for Document charge.
        3. B-1+2 when the amount of charge sequence 1 is subtracted from the Basic value and the amount of charge sequence 2 is added to it thereafter for Document charge.
        4. 3 when the amount of charge sequence 3 is only considered for building the Expression.

Allow modification in documentThe charge may be modified in applied documents if the checkbox given is ticked.

Expression Builder - COMMON TO BOTH ITEM AND DOCUMENT CHARGES
The Expression BuilderThis area is used to define the Formula of the applicable charges in actual calculable terms.
FieldField DescriptionConditions -
Operators for ExpressionThis combo list has only two values denoting if the charge will be added toor subtracted from the applied charges to get the desired formulaThe positive (plus) or negative (minus) sign is used to build the formula.
Charges for ExpressionThis is a list of charges applicable

Available Charge Name List -

  • Only those charges which are selected before the one for which formula is getting defined/edited i.e. charge whose sequence is lower than selected charge for expression building.

  • By default the Basic will be displayed in the beginning of the charge list which reflects gross value of the applied document.

    No. of Applicable Charges

    Note: The maximum number of applicable charges for each term is 10. Although they may be selected in any combination of item and document level charges.

InsertThis button will insert the defined formula in the Expression field.
ClearThis button will delete the defined formula from the Expression field.


How to define a formula?

After putting in the Term Name, selecting the applicable Trade Group, Ledgers and Sub Ledgers in the General and Accounts section; the user comes to the Item Charges tab or Document Charges tab. Here the Charge, the Sign, and Factor along with Type will be displayed automatically from Charge master and the user has to go to the Expression Builder to create his formulas for calculation of charge amount.

Note : The user has to create a separate formula for each charge, included in both tabs of the term.

Follow examples given below:

Suppose the term has the following charges

Seq.
Charge name
Calculation
Reflection in the Expression Builder
1.Discount

Discount of 10% on the gross value of the document

Note: Discount has a negative sign in the Charge Master; which means it is always deducted from the Basic

The existing formula i.e. the value Basic is displayed.

Click on Insert button to get it to the Expression field as B.

2.VAT

VAT of 2% on amount after discount

Note: VAT has a positive sign in the Charge Master

Note : VAT may also be calculated on the Basic



Select the charge Basic, click on Insert button.

Select (plus) from the list of operators.

Select the next charge, Discount, from the list and click on Insertbutton. Since VAT is going to be applied after Discount; the formula for that becomes -

B+1 (+ sign is provided even for a negative charge because mathematically - and + = -, but - and - = +)

3.Excise Duty

Excise Duty of 0.3% on the after VAT amount

Note: Excise Duty has a positive sign in the Charge Master

Select the charge Basic, click on Insert button.

Select (plus) from the list of operators.

Select the next charge, Discount, from the list and click on Insertbutton.

Select (plus) from the list of operators.

Select the next charge, VAT, from the list and click on Insert button.

Since Excise Duty is going to be applied after VAT; the formula for that becomes -

B+1+2

4.Education Cess

Education Cess 0.1% on Excise Duty

Note: Education Cess has a positive sign in the Charge Master

Select the charge Excise Duty. Since Education Cess is going to be applied on Excise Duty; the formula for that becomes -

3

Note:

  • Two charge name will always be joined by an operator, i.e. multiple charge name cannot be selected together.

  • Two operator can never be selected together, there must be a charge name on both side.

  • Formula cannot start with an operator.

  • Formula cannot end with an operator.

  • Formula cannot be blank i.e. formula is mandatory for every charge selected in term.

  • Document Charges are calculated as Basic + Item Charges.

This record is extinctThis field allows the flexibility of making terms extinct if they have become obsolete for application.
SaveThis button will save the Sales Term.
CloseThis button will close the Add Term window.


  Edit Term in S&D

Prerequisites

  1. The user's role must have the Modify application operation enabled for  Sales and Distribution > Setup > Invoice Overheads > Terms in Admin > Security > User > Roles.

Step-by-step guide

Following steps are used:

  1. Go to Sales and Distribution > Setup > Invoice Overheads > Terms.

  2. Select a Term from the list.

  3. Click on the Edit option in the Action menu to open the Edit Terms window. Alternatively, double click on the selected Vendor to open the Edit Terms window.


The user can edit any of the details in the window, provided the following conditions are fulfilled:

Important

  • Term name may be edited anytime.

  • Trade Group will be disabled once a charge is selected.

  • The Accounts block ledger and sub ledgers can be modified based on the same conditions as given in Add Term.

  • Charge name and Formula can be edited subject to same conditions as Add Term window.


  Delete Term in S&D

Prerequisites

  1. The user's role must have the Delete application operation enabled for  Sales and Distribution > Setup > Invoice Overheads > Terms in Admin > Security > User > Roles.

Step-by-step guide

Following steps are used:

  1. Go to Sales and Distribution > Setup > Invoice Overheads > Terms.

  2. Terms module opens populating the list of Terms.

  3. Select a Term you want to delete.

  4. Go to Action > Delete.

  5. You will get a message - "Are you sure you want to delete current Record?

  6. If you click on Yes, the charge will be deleted and you will get a message - "Record deleted successfully".