In Oracle Payables, a user can define an unlimited number of payment terms for an invoice. This is helpful in creating automatic scheduled payments. More than one payment line can be defined so as to create multiple scheduled payment lines and multiple levels of discounts.

The concept of payment terms works in a way such that each payment term line and each corresponding scheduled payment has a due date and a discount date based on a specific day of the month. While defining payment terms, payment amounts have to be defined in percentages or fixed amounts. Thus, payment terms help in scheduling the entire payments cycle in an easier and faster way.