Job Terms are typically used when production is outsourced and a specific payment arrangement exists with the supplier — such as a discount for early payment or a surcharge for extended credit.
A Job's Terms is a percentage adjustment applied to its budgeted cost, based on the payment arrangement agreed with the supplier for that production run.
This is not the customer's payment terms — it's a cost-loading factor used purely for costing and margin calculations on the Job.
TABLE OF CONTENTS
How It Works
Each Term (e.g. "30 Days EOM," "Cash on Delivery") has a rate attached to it. When a Job uses that Term, the rate either adds to or reduces the Job's budgeted cost:
| Rate | Effect on Cost | Effect on Margin |
|---|---|---|
| = 1.00 | No change | No change |
| > 1.00 | Cost goes up (loading) | Margin goes down |
| < 1.00 | Cost goes down (discount) | Margin goes up |
Example
Say a Job's budgeted cost (before rejects) is $10,000, per the cost sheet.
Scenario A — extended credit premium (rate 1.05): Supplier charges a 5% premium for extended payment terms.
Terms cost = $10,000 × (1.05 − 1) = +$500 Total budgeted cost = $10,500
Scenario B — early-settlement discount (rate 0.97): Supplier offers a 3% discount for paying faster.
Terms cost = $10,000 × (0.97 − 1) = –$300 Total budgeted cost = $9,700
Same Job, same base budgeted cost — but the Term selected changes the budgeted landed cost, and therefore the margin/GP% Sync reports on that Job.
Note: The Job's reject rate is also factored into the total cost calculation, and is applied before the Terms rate — so it can shift the final result too. In practice this means Terms is applied to (budgeted cost + reject cost), not to the raw budgeted cost alone.
Use Case
If a factory offers a discount for paying early, or charges extra for extended credit, capture that arrangement as a Term and assign it to the Job. Sync then automatically factors it into the cost sheet's budgeted cost — no need to manually adjust the cost.
Default Job Terms vs. Overriding on Selected Jobs
Default terms:
The default Term applied to Jobs is typically discussed and configured during Sync implementation, as part of the initial setup consultation. Once configured, this default Term automatically applies to any new Job/product created.
Duplicated Jobs:
When a Job/product is duplicated, the new record inherits the source product's Term — not necessarily the system default. If the source Job was using a non-default Term, that same Term carries over to the copy.
Overriding on a specific Job:
The Term on an individual Job can be changed manually, but only while the Job is in an editable status. Once a Job moves past that status, its Term is locked along with the rest of the cost sheet.