Purchase Order Discount Terms

To create a PO for a vendor who offers discount terms:

1) Create a vendor term entry, if it doesn't already exist, by going to Admin -> Payables -> Vendor Terms. Set a Discount Percent and Discount Days, if payment is required within a certain number of days to get a discount.

2) Set the discount terms as the vendor's default Payment Terms by going to the Vendor Terms section when editing the vendor (Expenses -> Vendors).

3) Create a new PO by going to Expenses -> Purchase Orders -> New Purchase Order. When you select the vendor for the PO, the default terms will appear in the Vendor Terms - This PO box. 

You can prevent Vendor Terms from being changed on POs (only the default terms set up for the vendor can be used) by turning on the setting Admin -> Payables -> General Setup -> PO -> Block Changing PO Vendor Terms. You can allow certain users to override this setting when its on by turning on the user setting Admin -> System -> Users -> User Rights For Company -> Can Always Change PO Vendor Terms Regardless Of Company Setting.

When the PO is converted to a vendor bill, the terms on the purchase order will pass to the bill.