Understanding the difference between Net Days and Specific Date payment terms helps you set clear and flexible invoice due dates for your customers. These settings allow you to either standardize your payment timelines or offer custom billing schedules to meet individual customer needs.
What They Are
Payment terms define when an invoice is due. You can set these terms at the billing profile level, applying them to a group of customers, or for an individual customer account.
Net [X] Days: This sets the due date for a specific number of days after the invoice is created. For example, a "Net 15" term means the payment is due 15 days from the invoice date. This is a common business practice that provides a consistent payment window.
Specific Date: This sets the due date to a fixed day of the month, such as the 5th or the 15th. Regardless of when the invoice is generated, the due date will always fall on that specific day of the month.
Why It Matters
Choosing the right payment term helps you manage cash flow and improve the customer experience.
Use Net Days when you want to enforce a standard payment cycle for all customers. It creates a predictable timeline from the moment a service is billed.
Use Specific Date to provide flexibility. This is ideal for customers who have requested a particular due date to align with their own accounting or payroll cycles. It is also essential for setting up autopay on a consistent, predictable day each month.
How It Works
The system calculates the due date based on the payment term you select.
If you set the Specific Date to the 31st of the month, the system will automatically set the due date to the last day of the month. For example, in a month with 30 days, the due date will be the 30th; in February, it will be the 28th or 29th.
If a customer's payment terms are updated, you must regenerate any existing invoices for the new due date to take effect.