Summary
Accounts receivable (AR) terms determine when payment is due (using configured payment terms) and what actions are executed when payment has not been received (using dunning rules). Multiple AR terms can be setup to handle the account types you have defined (partner, customer, etc.). The AR terms you configure on this screen are selectable when creating new accounts and adjustable on existing accounts from the account settings screen.
For additional details on the fields presented on this screen see the the Accounts Receiveable Terms guide.
Prerequisites
Payment terms are required to setup AR terms and must be configured beforehand.
Dunning rules are not required but need to be configured if you wish to add them to AR terms
Sample Configuration
Adding a new AR term.
In this example we will add a sample AR terms that is configured to set the invoice due date and define the dunning rule of the accounts.
Log into the LogiSense Billing application
Click on the Setup menu, Finance and then Dunning Process
Under the Bill Runs heading click the
button to add a AR Terms
Under the Add AR Terms heading give the AR Term a Name (e.g. ‘30AR'). In the example shown below the AR Term will be created to set the account payment due date as 30 days after the invoice render date/account bill day. This sample AR Term will also associate the dunning rule (e.g. consumer’) on the account which will apply the late fees post the due date.
Default: is not enabled, this AR term will not be automatically selected in the AR Term dropdown field when creating a new account.
Select the Payment Terms (e.g. NET30). This payment term will set the account invoice due date as 30 days after the invoice render date/account bill date (the starting date used is determined by the bill group setting 'Invoice Due Date Based On'). Refer Payment Terms Configuration Examples to configure this payment term.
Select the Dunning Rule (e.g. 'Consumer'). This Dunning rule will apply the late fees on the account post the invoice due date. Refer Dunning Rules Configuration Examples to configure this Dunning Rule.
Click Save to add the AR Term.
Result
AR Term: 30AR is available to be selected from the AR Terms dropdown when creating a new accounts and adjustable on existing accounts from the account settings screen.
Next Steps
<<documentation team task: link to next configuration article>>
Related Guides
<<documentation team task: link to API guide which covers the same config process>>
<<documentation team task: link to Data Import guide which covers the same config process>>