Minimum Version Required: 22.01
Steps
How To Configure Credit Terms
1. Using Universal Search, navigate to the Credit Terms table.
2. Click the Add Credit Terms button.
3. Enter values to the fields on the New Credit Terms form and click Add Record when complete.
4. Sub Tables show the relationship between Credit Terms and other tables. Click the Sub Tables button to see those relationships.
AR Accounts - Credit Terms
Split Invoice - Split Invoices where the AR collection is different for each group of products
Terms Payment Types - The allowed payment types for this Credit Term
Fields And Definitions
* = required field
● *Terms - Alias or name of Credit Term. Be as clear and descriptive as possible
Example: Fintech 30 Day, Net 30 - [Location], Cash Only
● *Days of Credit - The number of days from delivery to remit. Default is ‘0’
● *Enforce AR Collection - Determines how and when payment is expected to be collected for delivery. Default is ‘Before Invoice Print at Delivery (Enforce on Print Rules when Exiting a Customer)
● *Account on Hold - Prevents delivery when AR is Overdue. Default is False
● *Charge Finance Charge - Determines if Finance Charge is assessed automatically when the balance is Overdue. Default is False
● *Due Date Method - Business logic to calculate when payment is due. Default is Standard, which calculates the Load Sheet Date + Days of Credit to = Invoice Due Date
Example: If 0 Days of Credit, Invoice Due Date is the same as the Invoice Date. If 30 Days of Credit, Invoice Due Date is Invoice Date plus 30 Days.
● *Auto Application Method - Determines when/if remittances will have Payments automatically applied. Default is Same Invoice or Same Amount
● *Age Credits - Determines if Credits are Aged the same way as Debits. Default is False
● Auto AR Write Off Limit - Sets a limit for automated AR Write Offs to be created for both Credits and Debits
Example: If this field is set to $1.00, Open Debits and Open Credits that are between $0.00 and $1.00 will be automatically written off
● Auto AR Write Off Product - The product used for automated AR Write Offs
Best Practices
Consider the name of your credit term carefully - does it convey exactly what the expected behavior of the Credit Term is?
Credit Terms are applied to an AR Account or Split Invoice record. Clicking the ‘Add AR Account’ or ‘Add Split Invoice’ button on the sub tables will result in the creation of a new AR Account or Split Invoice record, not add the Credit Term to an existing AR Account or Split Invoice
Match Auto Application to the collection process: Auto Application of payments is recommended when automated remittances are created. Manual application is recommended when payments are collected manually
Credit Limit prevents a sale if the current AR already exceeds the credit limit. It is important to note that it will not prevent a sale if the new invoice will put them over their credit limit.For example, if the credit limit is $100 and the customer has $98 of AR, it won't prevent another $100 invoice from being created. Overrides do not work if a Customer is over their credit limit.