Invoice Terms
Invoice Terms - The specified conditions of payment for an invoice. They are typically based on the payment type and/or a specific amount of time.
Examples of terms most commonly used by associations:
- Net 30 - Requiring payment is due in full 30 days after the item is purchased.
- DUR - Due Upon Receipt
Adding Invoice Terms
Invoice Terms are added from the Business Unit Profile.
When an invoice type of terms is selected, you must also select the conditions of the payment to satisfy these terms and age the invoice.
For each invoice term that you create, you must define certain information:
Terms Code - This code describes the terms and is typically printed on the invoice.
Terms Days - The value in this field controls the number of days after the invoice is created that it will remain in the current column of the A/R Aging Report.
Finance Charge - This is used if your association applies a finance charge on invoices that are not paid within a certain number of days (after invoice creation). The percent is the finance charge amount; the price drop down list also gives you the ability to determine which accounts will be used for recognition of the finance charge.
Default Invoice Terms
Default Invoice Terms are also added from the Business Unit Profile on the Edit - Business Unit page. You have the option to add this feature when, or if you are adding Default G/L Accounts to your Business Unit.
When a value for this feature is added to your Business Unit, the terms field will automatically populate with your default value when you create an invoice and select "terms" as your invoice type. This saves time during the checkout process.
More importantly - it is used by netFORUM to age proforma invoices after a payment has been applied, which changes them to terms invoices. If you did not add default invoice terms, these invoices will be aged from the date they were created with no "grace" period.
Tip: A terms invoice appears on the General Ledger immediately. A proforma invoice appears on the General Ledger when a payment is made.