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Former Member
Oct 05, 2009 at 06:03 AM

Vendor payment terms.


Hi All,

I have a query in regard to vendor payment terms. If I have a payment term which says as below:

payment term 0024 - 10 days, 7.5% cash discount, Net due 30 days.

If I make a payment to vendor in less than 10 days I will get a discount on 7.5% on the total PO value. Is my understanding correct? And how will I make a payment to vendor (By posting MIRO for 7.5% less value) to avail the discount or is there any other process.

Thanks in advance