Payment Term

A payment term is a condition or guideline under which you can make or receive a payment. You must include a payment term on the invoice so your customers know that they must pay outstanding charges within a certain time. You can create multiple payment terms and even define the order in which each term is displayed on the invoice.

With Conga Billing, you can define multiple payment terms. Click the Payment Terms tab on the console to list predefined payment terms.

Note:

The payment term must be populated on the Bill To Account field, linked to the cart, or set as “Is Default = True.”
To generate invoices, use the Invoice Run or Ad Hoc Invoice features or the Create Invoices API.

To define a payment term

Click the Payment Terms tab.
Click New.

Enter values for the fields described in the following table.


Field	Description
Name	Enter a unique name for this payment term so that others in your organization can identify it.
Sequence	Enter a number to define the order in which this term is displayed on the invoice.
Label	Select a label from the following options. Net 30 days Net 45 days Net 60 days Net 90 days Due upon Receipt You can define more options in the Label object pick list.
Start Type	The date, month, or period from which the payment term is calculated.
Start Value	This defines the start date for a Start Type. Specify the date if you chose Month, Period, or Quarter as the Start Type.
Offset Type	Select the unit of a payment term, either day or month.Setting the Offset Type to "day" and entering "20" in its Value field sets the payment term to 20 days. Setting the Offset Type field to "month" and entering "1" into its Value field sets the payment term to 1 month. If the Offset Type is set to "End of the Month", the engine offsets the payment due date to the end of that month.
Value	The number of days or months in this payment term is set in the Offset Type.
Offset 2 Type	Indicates the parameter that must be used to compute the second offset. This offset type enables you to achieve the required invoice due date in combination with the Offset Type/Value fields. Note: If you leave this field blank, the engine calculates the due date based on the parameters available in the Offset Type, making your payment term behave as the "As is" payment term.
Offset 2 Value	Populate the value for the specific day or the day of the month you want to invoice your customer based on the parameter in the Offset 2 Type field.
Offset Occurrence	The frequency associated with the offset type. For example, if an invoice is due on the second occurrence of the 15th, the Offset Type must be set to Specific Day and the Offset Occurrence must be set to 2.
Description	Enter a brief description of the payment term.
Is Default	Check this box to make a given payment term the default for this account's invoices.
Offset Early Invoice Date (Days)	Enter the offset in days by which Billing must determine the ready-for-invoice date. By entering a value in this field and selecting the same payment term on the billing plan line item, you can select the Ready for Invoice date beyond the start and end dates by the number of days configured in the Payment Term record. For more information, see Creating a Billing Plan.

Click Save.

Examples

Suppose you are an admin of a company and your customer wants a payment term with three offset periods: Net 30, end of month, and 10th of the following month. This gives the invoice due date three offset parts:


Part	Offset
First	30 days from invoice date
Second	End of the month (after 30 days are over)
Third	and then ten more days in the following month

If the invoice date is 07-March-2024, the due date for the above requirement will be 10-May-2024.

You can use the combination of Offset Type/Value and Offset2 Type/Value to fulfill this requirement.


Field	Value	Description
Start Type	Day	The first requirement is 30 days, hence select Day from the dropdown.
Start value	30	If the start value is 30, the engine counts 30 days from the invoice date: 07-April-2024.
Offset Type	End of Month	The second requirement is End of the Month (EOM), hence select End of Month from the dropdown. If the Offset Type is set to EOM, the engine offsets the payment due date to the end of the month: 30-April-2024.
Value	Null	If the offset type is EOM, there is no need to add the offset value because Conga Billing defers the due date to the end of the current month.
Offset 2 Type	Specific Day	Set Offset 2 Type to Specific Day to push the invoice due date to a specific day in the following month. If you leave this field blank, the engine calculates the due date based on the parameters available in the Offset Type parameters.
Offset 2 value	10	Set the value to the specific day or the day of the month you want to invoice your customer. If the offset 2 value is set to 10, the engine further offsets the payment due date by 10 more days: 10-May-2024.

Let us take a look at a couple of scenarios to understand how you can achieve different configurations with the Payment Term fields. The first use case shows how to achieve different configurations using both Offset Type and Offset 2 Type fields while the second use case does it with the Offset type field only. You can follow anyone at your convenience.

Tip:

Use Case with Offset Type and Offset 2 Type

Requirement 1: Any invoice billed after the 10th of the month is due on the 5th of the fourth month.

For example, an invoice dated Jan 10, must have a due date of Apr 5th

Start Type = End of Month

Start Value = NA

Offset Type = Month

Offset Value = 2

Offset Occurrence = 2

Offset 2 Type = Day

Offset 2 Value = 5

Requirement 2: Any invoice billed after the 21st of the month is due on the 12th of the second month.

For example, an invoice dated Aug 21, must have a due date of Oct 12th

Start Type = Day

Start Value = 11

Offset Type = End of Month

Offset Value = NA

Offset Occurrence = NA

Offset 2 Type = Specific Day

Offset 2 Value = 12

Requirement 3: Invoices billed in June must have a due date of Sep 15th

For example, the due date of all the invoices billed in June must have a due date of Sep 15th

Start Type = Invoice Date

Start Value = NA

Offset Type = End of Month

Offset Value = NA

Offset Occurrence = 2

Offset 2 Type = Specific Day

Offset 2 Value = 15

Tip:

Use Cases with offset Type only

Requirement 1: Any invoice billed after the 20th of the month (21st to end of the month) is due on the 20th of the second month.For example, an invoice dated Apr 11, must have a due date of June 20th

Start Type=Specific Day

Start Value=20

Offset Type=Month

Offset Value=2

Offset Occurrence= null

Requirement 2: A billed invoice is due at the end of the month, two months later.For example, an Invoice dated Jan 20, should have a due date of March 31st.

Start Type=End of Month

Start Value= null

Offset Type=Month

Offset Value=2

Offset Occurrence= null

Requirement 3: All invoices billed in a quarter ( i.e. Jan - Mar) are due 20 days from the end of the quarter.For example, the due date for all invoices in the period Jan 1st to March 31st will be April 20th.

Start Type=End of Quarter

Start Value= null

Offset Type=Day

Offset Value=20

Offset Occurrence= null

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Payment Term

To define a payment term

Examples

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