How to Use Customer Net D Terms

Net D is the grace period you offer your customer to pay their outstanding invoices. For example, a customer with a Net D of 21 has 21 days from the invoice’s requested date before payment is due.

• Customers with a Net D = 0 are referred to as cash customers.
• Customers with a Net D > 0 are referred to as terms customers.
  • Some terms customers will make payments in weekly or monthly installments against their outstanding balance, rather than making payments for specific invoices.

If you update the terms of a customer who has outstanding invoices, this won't retroactively affect any existing invoices—it will only impact the calculated due date when a new invoice is created. The only time the due date is recalculated for an existing invoice based on the customer's current terms is when a user changes its requested date.