If you select a "Due on Receipt" payment term on an invoice and the due date shows the 1st of next month instead of today, the payment term is misconfigured. This article explains why it happens and how to fix it.
What's Happening
Observed behavior: Selecting "Due on Receipt" results in a due date of the 1st of the following month.
Root cause: The payment term is set to "Due by certain day of the month" with Day = 1, which correctly rolls to the next 1st after the invoice date — but that's not the same as Due on Receipt.
Correct setup for Due on Receipt: Use "Due in fixed number of days" with Due Days = 0.
Why You're Seeing a Future Due Date
When a payment term is set to "Due by certain day of the month" with Day = 1, Floorzap calculates the due date as the next occurrence of the 1st on the calendar. If the invoice date is after the 1st — for example, April 6 — the system rolls forward to May 1. This is correct behavior for that term type, but it does not represent "Due on Receipt."
Understanding Payment Term Types
Floorzap has two payment term calculation types:
Due in fixed number of days — calculates the due date as invoice date + N days. Use this for Due on Receipt (0 days), Net 15 (15 days), Net 30 (30 days), etc.
Due by certain day of the month — calculates the due date as the next occurrence of a specific calendar day after the invoice date. Use this for terms like "Due by the 15th of the month."
How to Fix Your "Due on Receipt" Payment Term
Open your payment term settings and locate the "Due on Receipt" term.
Change the Payment Term Type to Due in fixed number of days.
Set Due Days to 0.
Save your changes.
While you're there: Review all active payment terms to make sure their names match their configuration — for example, Net 15 should use "Due in fixed number of days" with 15 days; "Due by 15th of the month" should use "Due by certain day of the month" with Day = 15.
Verify the Fix
Create a new invoice with today's date.
Select your updated "Due on Receipt" term.
Confirm the Due Date displays as today's date.
Example
Invoice date: April 6
Misconfigured term: "Due by certain day of the month," Day = 1 → Due date: May 1
Correctly configured term: "Due in fixed number of days," Due Days = 0 → Due date: April 6
If you don't see Payment Terms in Settings, your role may not have access. Ask your account administrator to update the term or grant you the necessary permissions.