How to embed and if statement inside a case. This is what I have so far.
DECLARE @LDCCode as int
       DECLARE @InvoiceDate as datetime
       DECLARE @PaymentSemiMonthlyDays AS int
       SET @LDCCode = 20
       SET @InvoiceDate = '5/16/2012'
       DECLARE @InvDateDayMonth AS INT
       DECLARE @ReturnDate AS DATETIME
       SET @ReturnDate = @InvoiceDate
       DECLARE @PaymentDOM AS INT
       DECLARE @PaymentDays AS INT
       DECLARE @PaymentSemiMonthlyOffset AS INT
SET @ReturnDate = CASE WHEN NOT @PaymentDOM IS NULL THEN
   @ReturnDate + (@PaymentDOM - DATEPART(day, DateAdd(mm,1,@ReturnDate))) 
WHEN NOT @PaymentDays IS NULL THEN 
            DATEADD(Day,@PaymentDays,@ReturnDate)
WHEN NOT @PaymentSemiMonthlyOffset IS NULL THEN                     
    IF @LDCCode = 40 AND @InvDateDayMonth > 11 AND @InvDateDayMonth < 26 
       SELECT @ReturnDate + (@PaymentSemiMonthlyOffset - DATEPART(day, DateAdd(mm,1,@ReturnDate)))
    ELSE
       SELECT @ReturnDate + (@PaymentSemiMonthlyDays - DATEPART(day, DateAdd(mm,1,@ReturnDate)))    
    END 
                The short answer is yes, you can nest an if inside of swtich / case statement (or vice versa).
SQL Server CASE statement is equivalent to the IF-THEN statement in Excel. The CASE statement is used to implement the logic where you want to set the value of one column depending upon the values in other columns. The SQL Server CASE Statement consists of at least one pair of WHEN and THEN statements.
In the Nested CASE expression, the outer statement executes until satisfying a condition. Once the condition is met, the inner CASE expression executes and returns a single result. If no condition is met in the outer statement, CASE expression returns the value in the ELSE statement.
You can't combine logic in that manner, but you can add a nested CASE your existing CASE statement:
SET @ReturnDate = (CASE WHEN NOT @PaymentDOM IS NULL THEN
    @ReturnDate + (@PaymentDOM - DATEPART(day, DateAdd(mm,1,@ReturnDate))) 
WHEN NOT @PaymentDays IS NULL THEN 
    DATEADD(Day,@PaymentDays,@ReturnDate)
WHEN NOT @PaymentSemiMonthlyOffset IS NULL THEN
    CASE WHEN @LDCCode = 40 AND @InvDateDayMonth > 11 AND @InvDateDayMonth < 26 THEN
        @ReturnDate + (@PaymentSemiMonthlyOffset - DATEPART(day, DateAdd(mm,1,@ReturnDate)))
    ELSE
        @ReturnDate + (@PaymentSemiMonthlyDays - DATEPART(day, DateAdd(mm,1,@ReturnDate)))
    END   
END)
Though, if this is in a stored procedure, I might just opt for simpler IF/THEN/ELSE structure instead of the CASE:
IF @PaymentDOM IS NULL
    SET @ReturnDate = @ReturnDate + (@PaymentDOM - DATEPART(day, DateAdd(mm, 1, @ReturnDate))) 
ELSE IF NOT @PaymentDays IS NULL
    SET @ReturnDate = DATEADD(Day,@PaymentDays,@ReturnDate)
ELSE IF NOT @PaymentSemiMonthlyOffset IS NULL
BEGIN
    IF @LDCCode = 40 AND @InvDateDayMonth > 11 AND @InvDateDayMonth < 26
        SET @ReturnDate = @ReturnDate + (@PaymentSemiMonthlyOffset - DATEPART(day, DateAdd(mm, 1, @ReturnDate)))
    ELSE
        SET @ReturnDate = @ReturnDate + (@PaymentSemiMonthlyDays - DATEPART(day, DateAdd(mm, 1, @ReturnDate)))
END
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