These settings help you manage your outstanding customer debt. Choose your ageing periods and default payment terms here.
The ageing periods are used on your aged debts reports and statements.
The payment terms are used to calculate when invoices are due to be paid.
Generally customer debts are aged over three periods, which are typically 30, 60 and 90 days. The last aged period holds both the debts in the period and those debts that exceed the period.
You can have a minimum of 3 and a maximum of 8 ageing periods.
Open: Sales Ledger > Utilities > Ledger Set Up > View Ledger Settings | Ageing.
Enter or view the following settings:
These terms are applied each time you create a new customer account. They indicate when invoices are due to be paid.
You can change these payment terms on individual customer accounts.
The Sales Ledger combines the Basis of terms with the Number of days to calculate the due date on invoices.
Choose the number of days for each of your ageing periods.
| Debtors periods start after |
Enter the length of each ageing period (in days). This is used to age transactions on statements, aged debtors reports and letters. For statements, you choose how to age your transactions on the Processing tab. Example of ageing on Aged Debtors reports
Your ageing periods are set up as follows:
An invoice has a transaction date of 30/04/2009 and a due date of 30/05/2009.
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| Due date periods start after |
Enter the number of days you want for each ageing period on the Due date report only. Transactions are listed in the relevant aged period based on the number of days they are past their due by date. Example of ageing on the Due Date report
Your ageing periods are set up as follows:
The due date on a invoice is 30/04/2009.
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Reference