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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 see a list of 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, you must use either the Invoice Run or Ad Hoc Invoice features, or use 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 | You can select one label from the following options.
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. 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. 
If you leave this field blank, the engine calculates the due date based on the parameters available in the Offset Type. Leaving this field blank will make 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. |
4. 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 |
|---|---|
| 1st | 30 days from invoice date |
| 2nd | End of the month (after 30 days are over) |
| 3rd | and then Ten more days in the following month |
If the invoice date is , the due date for the above requirement will be .
You can use the combination of Offset Type/Value and Offset2 Type/Value to achieve 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: |
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: |
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. |
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: |
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