Search our Knowledge Base

AR Payment Term

Warren Hamilton
Warren Hamilton
  • Updated

Set up list of pre-defined credit terms offered to a customer in the system.  These payment terms will be used when invoicing the customer to define the due date for making a payment. The term is required when setting up new customer contracts and customer accounts which will in turn be retrieved as default credit terms for any billing transaction under this contract or customer account.

 

 

Navigation

1. From the homepage, go to Finance module.

2. Navigate to the Accounts Receivable and select AR Payment Term.

 

Guide

1. Click the Create New button.

2. 

 

 

The System allows users to select from the following choices for configuring Payment Terms:

Options

Description

Further Input Required

Example

Due on Bill Date

Due date is the same as Date of Invoice, i.e. “0” days credit terms. 

Not Applicable

If Invoice is dated 19 Jan, Then Due date if 19 Jan. 

Due in Number of Days

Due date is Invoice Date + “X” number of days credit term as defined by User

Number of Days

  • If Invoice is dated 1 Jan, and “X” is 14, then Due date is 15 Jan. 

  • If Invoice is dated 25 Jan, and “X” is 14, then Due date is 8 Feb.

Due on day of current month

Invoice is due on a fixed day “X” of the month Invoice is being dated. 

Fixed Day of Month *

  • If Invoice is dated 1 Jan, and “X” is 14, then Due date is 14 Jan. 

  • If Invoice is dated 25 Feb, and “X” is 31, then Due date is 28 Feb.

Due on day of next month

Invoice is due on a fixed day “X” of the month following Invoice is being dated.

Fixed Day of Month *

  • If Invoice is dated 1 Jan, and “X” is 5, then Due date is 5 Feb. 

  • If Invoice is dated 25 Jan, and “X” is 31, then Due date is 28 Feb.

  

Step Process

  1. From the homepage, go to module menu option.
  2. Navigate to "Finance> Accounts Receivable > AR Payment Term."
  3. Click on “Create New”.
  4. Enter the following fields:
    Payment Term Name: Enter “Due in 30 Days”
    Standard Term: Select “Due in number of days”
    Net Due in Count: Enter “30”
  5. Click “Save and Close”.

Notes

1) If date does not exist for a month (e.g. 31 Feb), the system will select a valid date immediate prior to the selected date (e.g. 31 Feb will result in 28 Feb).

2) When this payment term is selected in the Invoice module, the due date of the invoice will be calculated automatically.

Next Steps

1) AR Charge Type

 

Related Articles

 

Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.