Set Up Payment Terms for Vendor
Question
You are creating payment terms.
A company processes standard vendor payments on the seventh day of the next month.
You need to set up payment terms for the vendor.
Which date formula should you use?
Answers
Explanations
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A. B. C. D.D.
https://business-central.to-increase.com/md/en-US/ui-enter-date-rangesTo set up payment terms for the vendor, you need to choose a date formula that will calculate the due date of the payment based on the invoice date. From the information provided in the question, the company processes standard vendor payments on the seventh day of the next month.
There are several date formulas available in Microsoft Dynamics 365 Business Central, but the one that should be used in this scenario is option C: 1M+6D.
Explanation:
- "1M" represents one month after the invoice date.
- "+6D" represents an additional 6 days after the end of that month.
Using this formula, the due date for the payment will be the 6th day after the end of the month in which the invoice was issued. For example, if the invoice date is March 15th, the due date will be April 6th (one month after March 15th, plus an additional 6 days).
Option A, "37D," is not a valid date formula in Business Central. Option B, "1M+7D," would result in the payment being due on the 7th day after the end of the month, rather than the 6th day as specified in the question. Option D, "CM+7D," represents the end of the current month plus 7 days, which would not give the desired result for this scenario.
