Customer terms determine the amount of time a customer has to pay an invoice once the invoice is issued to the customer. You can use customer terms to:
- Adjust the Issue Date so the customer always has the amount of time defined in the customer terms to pay the invoice.
- Automatically set the Due Date of an invoice based on the day when the invoice was issued.
When you use the below configuration, the system does not know when the invoice will be issued so the displayed Due Dates are approximate until the invoice is actually issued.
Adjust the Issue Date
To adjust the Issue Date automatically based on the customer terms for a customer:
- Click the Payment Schedules link from the Main Menu. The Payment Schedules screen opens.
- Select the payment schedule for the customer.
- Right-click and select Edit. The Edit Payment Schedule screen opens.
- Select the Payment Schedule Steps tab.
- Select the payment plan step that needs the Issue Date defaulted based on the customer terms.
- Right-click and select Edit. The Edit Payment Schedule Steps screen opens.
- Expand the Due Date section.
- Check the Override Terms check box. This means that the Due Date is set by the payment plan regardless of the customer terms except in the cases where it results in a less favorable due date for the customer. The more favorable Due Date is always used.
- Expand the Issue Date section.
- Check the Use Terms To Calculate Issue Date check box. This calculates the Issue Date as the Due Date minus the number of days defined for the customer terms. The Issue Days Prior To Due Date field defines the minimum number of days that can override the customer terms if needed.
- Click OK.
Adjust the Due Date
To adjust the Due Date automatically based on the customer terms when the invoice is issued:
- Click the Payment Schedules link from the Main Menu. The Payment Schedules screen opens.
- Select the payment schedule for the customer.
- Right-click and select Edit. The Edit Payment Schedule screen opens.
- Select the Payment Schedule Steps tab.
- Select the payment plan step that needs the Due Date defaulted based on the customer terms.
- Right-click and select Edit. The Edit Payment Schedule Steps screen opens.
- Expand the Due Date section.
- Uncheck the Override Terms check box.
- Enter 0 into the Due Date Days field.
- Select After from the Days After/Before drop-down.
- Select Order Date from the Calculation Date drop-down. This ensures the base date is either the current date or earlier because the calculation uses the latest date between the Due Date determined by the customer terms and the Due Date configured for the payment plan step. This ensures the latest date is always used.
- Expand the Issue Date section.
- Uncheck the Use Terms to Calculate Issue Date check box.
- Enter 0 into the Issue Days Prior to Due Date field. This ensures the Issue Date is whenever the user creates the invoice.
- Click OK.
Comments
4 comments
I am trying this now, I have setup a payment schedule with 2 steps.
Both are 0 Days After Order Date for due, and 0 days before Issue date. override unchecked.
The event start was 02/05 and ends 06/06, Today is the 03/06. The customer terms is 0 days (immediate payment)
The order was created month ago when we started adding production resources. I am expecting to be able to add to a payment plan now as the client ordered some furniture. and then be able to invoice it, the invoice was generated 03/06 and due would be 03/06, and then post show, run the actual invoice step to pickup any further additions and would be due the date it says that.
When I try and choose the payment plan it says the due date cannot be less then the current date, please change the due date and try your request again. and will not proceed.
If I go and change the customer terms to 14days it still shows the same error. How can I achieve it so that I can add a customer payment plan to this order, and then invoice it with a due date of immediate as per the customer terms?
0 upvotes
Kieron,
There is one piece of information you have not included. The terms on the customer in question. Because you state that you have unchecked the override customer terms, this means the PP due date is effectively out of play and that the invoice will inherit the due date from the customer at the time of invoice creation.
But this is not the real issue. The problem is that you have set the PP steps to calculate according to the Order Date but then you have waited one month before creating the PP. Typically when setting PP steps to Order Date, the PP is created at the same time you create the order. By waiting one month, you have made all the dates push back into the past - hence your warnings and hard stop.
0 upvotes
HI Sean, the terms are "The customer terms is 0 days (immediate payment)"
The reason I set them to according to the order date, is that is what this article stipulated.
The impression I got, and what we are after, and maybe I'm reading this article wrong, is that by doing the above steps, the due date will be set based on the customer terms based on the date the invoice is issued. Ie customer terms is 0 days, the due date is the date the invoice is raised, not to do with the order date.
The reason we encounter this issue is we have been using Ungerboeck for a year without AR and have no PP on service orders, but now are going to be using financials. As part of a process going forward we could make it when the exhibitor list is imported all Service orders get a payment plan added then.
Would this still present the same problem and not give the outcome as described above though? Ie we imported the exhibitor list 1 mth ago (usually the case), immediately added the payment plan as described above. but then today they actually order something and we try and invoice it, will the invoice be "due" today? or will it be due 1mth ago as that's when the order was created?
As I said maybe I'm reading this article wrong, and this doesn't give the due date based on the date an invoice is generated from customer terms regardless of when the order was created?
0 upvotes
Hi Kieron -
It is somewhat hard to say where the configuration or order discrepancy lies without reviewing it. I believe it may be helpful if someone on our side could see your actual setup and the message you are receiving. If you could please submit a ticket with screenshots that we could follow along with, we can review and reach out with some guidance.
Thanks!
0 upvotes
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