Handling Invoice Due Dates

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Last updated: Jul 18, 2017 by Former user (Deleted)
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What are Invoice Due Dates?

Financial Transactions classified as Invoices must have a Due Date when they are Posted. The Due Date is the date by which an Invoice or a Bill must be settled. It can be either added by the User or calculated and set by the System.  In both cases, when saving a Financial Transaction the Due date will be validated against the rules and conditions set in the 'Active'

Accounts Receivable Definitions

How does the Due Date Calculation work?

If a user does not specify a Due Date when posting an Invoice, then the Due Date is generated by the System based on the Accounts Receivable Definitions of the Credit Period rules, using the calculation below:

  1. If the rule is set to fixed number of days, then the Due Date is set equal to the Posted Date plus the specified number of days
  2. If the rule is set to the nth day, X months after the Posted Date, then the Due Date is set on the nth day, X months after the Posted Date
  3. If the rule allows a proximity range and a Credit Period is set on the corresponding Accounts Receivable then:
    1. If the Credit Period is set to plus X days, then the Due Date is set X days after the calculated Due Date
    2. If the Credit Period is set to minus X days, then the Due Date is set X days before the calculated Due Date

The Proximity range should be within the limit allowed on the customer Accounts Definition. Otherwise, it is set by the System to the closest allowed value.

View Setting and Updating Credit Terms for Accounts Receivable for more information related to the Credit Terms.

View Understanding Financial Transactions for business examples related to Handling Invoice Due Dates

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