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.
- 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
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.
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
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