Forum Discussion

NowHolly70's avatar
NowHolly70
Experienced Cover User
5 years ago

Ageing Terms not picking up correctly on Statement

I have set up a test account using the ageing terms of #no of days after EOM    balance due days = 31   invoice as follows 10.3.20      $9.35 10.2.20      $9.68 25.1.20    $33.00 19.12.19  $6...
  • NowHolly70's avatar
    NowHolly70
    5 years ago

    Hi Tracey,

    Thanks for your reply.

     

    As I am setting up a new data file we just wanted to get this right.

    So after taking into consideration what you have said

    We have come up with this formula:-

    We set our customers up as

    Day of Month after EOM

    Discount = EOM

    Day = 30th

    If we set up this way

    reports are correct

    ageing is correct

    and payment due days is correct

    Statements are correct (running them at the 1st on the following mth)

    Can you see any issues with this.

     

     

     

     

     

NowHolly70's avatar
NowHolly70
Experienced Cover User

Hi Tracey,

Thanks for your reply.

 

As I am setting up a new data file we just wanted to get this right.

So after taking into consideration what you have said

We have come up with this formula:-

We set our customers up as

Day of Month after EOM

Discount = EOM

Day = 30th

If we set up this way

reports are correct

ageing is correct

and payment due days is correct

Statements are correct (running them at the 1st on the following mth)

Can you see any issues with this.

 

 

 

 

 

Tracey_H's avatar
Tracey_H
Former Staff
5 years ago

Hi NowHolly70 

 

There's no issue at all with either of those credit term options you have looked at. The only thing about choosing a number of days after EOM, ie 30 or 31, is that statement aging will be affected according to the number of days in the month and the date you run the statement.

 

Day of month after EOM - EOM is a common choice for businesses as payment is due on the last day of the month regardless of the number of days in the month, so it's easier to tell when invoices are due.

 

But it really is up to your business which option you choose based on what suits your needs best. This help article explains the different credit terms in more detail:  Credit terms 

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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