Payment Terms Example

Summary

Payment terms allow you to define how invoice due dates are set and are required in order to setup accounts receivable terms (AR terms). AR terms are selected when creating accounts in order to specify the invoice due dates and dunning rules that apply to the account.

In this example we will add a payment term that is configured with a Net 30 configuration so that payment will be due 30 days after the invoice is rendered/the bill date of the account.

For additional details on the fields presented on the payment terms screen see the Payment Terms Screen screen help article.

Prerequisites

• Payment terms can be setup as needed, there are no prerequisite configuration steps

Sample Configuration

Adding a Payment term

1. Log into the LogiSense Billing application

2. Click on the Setup menu, Finance and then Dunning Process

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3. Click on the Payment Terms tab in the upper right

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4. Under the Payment Terms heading click the  button to add a Payment Term

    

5. Under the Add Payment Terms heading give the Payment Term a Name (e.g. 'NET30'). In the example shown below a payment term will be created to set the account payment due date as 30 days after the invoice render date/account bill day

    

6. Set the Payment Terms Type as Net

7. Enter the Term as 30

8. Click Save to add the Payment Term

Result

Payment Term: NET30 is available to be selected from the Payment Terms dropdown when creating/updating an AR Term.

Setup / Finance / Dunning Process / AR Terms

Next Steps

• Optional: if you want to configure actions that occur when invoices are overdue (late payment charges, notifications emails, automatic account suspension) you can do so now or at a later time. See the Dunning Rules Configuration Example article for details on how to setup dunning rules

• Accounts receivable terms are required in order to setup accounts in the system. See the Accounts Receivable Configuration Example article for details on how to configure AR Terms