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 |
|
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 * |
|
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 * |
|
Step Process
- From the homepage, go to module menu option.
- Navigate to "Finance> Accounts Receivable > AR Payment Term."
- Click on “Create New”.
- 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” - 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
Related Articles
- AR Settings
- AR Payment Mode
- AR Charge Type
- Accounts In Credit
- Cash Charge Listing
- Deposit Listing For Operations
- Unbilled Item Listing
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