Term Setup

Pathway: Setup > Accounting > Term

Term Setup establishes the payment terms on an invoice to indicate when payment is due.

Field Descriptions

Fields	Descriptions
Term ID Required	A unique ID assigned to the term.
Name Required	The name of the Term that displays in any Term selection drop down field.
Display Text	The text that will display on an invoice. Only displays on invoices with supported formats.
Number Of Days Required	The number of days after the invoice date a payment is due. An entry here controls when an uncollected invoice balance is considered past due.
Grace Period Days	The number of additional days after the due date before a payment is considered late. This allows flexibility in applying late fees. The default setting for this field is '0'.
Payment Gathering Required	The payment collection method.

Add/Edit a Term

To add or edit an Term, use the following steps. Once created, the Term will be selectable from

To Add

Click the green + icon to open the Create Term tool.
Complete the following required fields:
- Enter a unique, short descriptive Term ID.
- Enter a unique, longer Name for the Term.
- Enter a numeric value in the Number of Days field to establish the payment due time frame.
- Select an option from the Payment Gathering field.
Add Display Text for this Term to display on the Invoice, if supported.
Click Save when finished.

To Edit

Click on the field that needs to be modified. After a Term is created, any field other than the Term ID can be changed. ***However, altering the number of days, grace period and/or the Payment Gathering method compromises history AR aging, collection workflows, and financial reporting. The best practice is to create a new term with a distinct name and update customer accounts to ensure future transactions follow the correct logic without corrupting past data.

Application of Term

The Term configurations that are set up here are visible in several screens and processes.

Account Management

Every customer account created must have a Term assigned.

Pathway: Accounts > Add Account

AR Management

The AR Aging tool (which buckets invoices into 1–30, 31–60, etc., days past due) uses the Term to decide which bucket an invoice belongs in. The term dictates when an account is considered past due and which aging bucket it belongs in.

Pathway: Accounting > AR Management

Invoice Generation

When a billing batch is processed, the Due Date is determined by taking the invoice date and adding the Credit Days from the Term. This is what is printed on the invoice.

Filtering

The AR Aging screen and the Accounts Search screen are examples of where Term is provided as a filter. It can be used to view all customers who are on a Net 60 agreement.

Permission

The following permissions are required to view, add and edit terms:

Permission ID	Permission Name
22	Setup \ Accounting

Database Query Mapping

Use the Database Query Tool to evaluate accounts with a specific term.

Database > Database Query

Use the Enititis and Display Fields suggested to audit and investigate accounts based on Term.

Entity	Display Field	To Find (examples)
Accounts and Sites	Account Term Name Account Term Id	Accounts that have been assigned a certain Term.
AR History	Due Date - term is used to calculate due date AR Type - helps distinguish between invoices Balance - used with Due Date for Term violation	When the term expires and the payment is late.
Revenue	Invoice Date	The starting point from which a term is calculated.

Create Account: Screen Field Descriptions

AR Aging Management - Accounting