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Billing Terms – Overview

The Billing Terms Master File stores the details of payment terms which will be used by DeliveryMAX for Accounts Receivable. Each Bill To account, whether it be a National Account, Customer, or Location has an area to assign Billing Terms. This Master File is the source of those options.

TIP: Billing Terms can be used to establish both early payment discounts and interest rate for late payments. The compounding period of late payment interest can also be set.

A/R value = (total unpaid amount from sales) – (total unapplied payments amount)

Charges and/or discounts are generated for each individual sale and affect the total for that sale.

When a sale is marked as Printed by running the Invoice Statements report, the Printed date is set as 12:00 A.M. of the following day. The Printed date is Day 1 in calculations of any A/R numbers. For example, if you print an invoice on 5/15, the printed date will be set to 12:00 A.M. (midnight) of 5/16. 5/16 will be Day 1 of the Grace Period, Discount Period, etc. This is done so that whether you print an invoice at 7 A.M. or 7 P.M., the billing system will treat the invoice the same.

Field Descriptions


Descriptive name of Billing Term. This description will appear on the Invoices and Statements, which are printed for the Bill To account.


This is the primary field for establishing payment terms. The options are:

COD – Cash on Delivery. This will indicate that payment must be made at the time of the delivery. It will be the responsibility of the Delivery Driver to collect the payment.

Charge – This will indicate that payment terms are offered. The specifics of those terms are established by the other fields on this screen.

Cash in Advance – This will indicate that payment should be made by the Bill TO account before a Delivery is made. It will be the responsibility of the Delivery Driver to ensure payment has been made before delivery.

Cash Only – This will indicate that payment will only be accepted in Cash. It will be the responsibility of the Delivery Driver collect the Cash.

Pay Prior Balance – This will indicate that no Deliveries can be made before previous balances are paid. The VendMAX handheld will maintain a list of outstanding invoices so that the Delivery Driver has the information necessary to ensure these terms are met.

Most payment terms will be Charge. In this case, the other fields on this screen will establish the specific terms of the Charge.

Discount Period (Days)

The number of days in which a customer has to pay in order to receive the discount percentage.

Discount (%)

Percent discount a customer is to receive if bill is paid in the allotted discount days


Assume we have the following scenario:

Discount Period = 7,

Discount % = 5,

Total Sale = $600,

Printed Date = 2/1/03

If we Generate A/R for any day from 2/1/20 to 2/7/20, then the discount will be applied as a discount invoice item with a quantity of -1,  and a total amount of -$30 (600 * 0.05*-1). The Total Sale is now calculated as: $600 – $30 = $570.

If A/R is not generated again, this sale always will be printed from the Invoice Statement report as $570. (Note that the Invoice Statement Report has the option to regenerate A/R.)

If A/R is regenerated for any day after 2/7/020, then the Discount Invoice Item will be removed and the total sale will again be equal to $600. If A/R was never generated for a date prior to 2/7/20, then the Discount will never be applied.

If the Sale is partially paid before 2/7/20, then the Discount will still be removed completely when A/R is generated for a date after 2/7/20. The Total Sale Unpaid will change by the amount of the discount.

Using the same example, if the Sale Amount is $570, and $500 was paid on 2/5/20, then Total Unpaid = $70 (A/R balance = $70).

If we Generate A/R up to 2/8/20, then the Discount is removed. The Total Sale equals $600 again, Paid is still $500, but Total Unpaid is changed to $100 (A/R balance = $100).

Grace Period (Days)

The number of days in which a customer has to pay without having interest assessed

Update Frequency (Days)

This is the compounding frequency. The Finance Rate is an annual rate. However, the actual amount of interest due depends on the compounding frequency. If this is set to 1 day, then the daily rate is applied every day. If it is set to 30 days, then a 30 day period is applied every 30 days.

Finance Rate (%)

Annual percentage rate charged customer for late payment of invoices.

How Finance Charges are applied

Assume the following scenario:

Sale = $600

Print Date = 2/1/03

Grace Period = 20

Update Frequency = 10

Finance Rate = 10%

If the Sale was paid in Full on or before 2/20/20 then no charges are applied.

If the Sale was not paid at all on or before 2/20/20, and you generate A/R for any day after 2/20/20, then DeliveryMAX calculates how many full Update Frequency periods passed since the PRINTED DATE (not Printed Date + Grace Period). The number of periods are then multiplied by the Finance Charge for one period ((Total Sale) * (Finance Rate)).

For example, assume you Generate A/R up to 2/25/20. The Grace Period has already passed. There are 25 days since the Printed date, which means 2 full periods have passed. Finance Charges are (10% of the Total Sale) * (2 Update Frequency Periods) = $120. After the Finance Charges are applied the Total Sale will be $720.

A new Invoice Item labelled “Charge” will be added to the Sale, with a quantity = 1, price = $120, and total $120. If we then Generate A/R up to 5/1/20, then the number of days between 2/1/03 and 5/1/03 = 89. 8 Full Grace Periods have passed since the Printed Date, which means the total Finance charge will be 8 * $60 = $480. The old Invoice Item will be removed and a new one will be created with the new charges.

If a Sale was Partially Paid, then DeliveryMAX calculates Finance Charges on the unpaid amount. For example, if a payment of $100 was entered on 2/5/20, when DeliveryMAX Generates A/R up to 2/20/20, then the unpaid amount is $500 and Finance Charges will be based on $500. A more complicated case occurs when there is more than one partial payment involved.


Payment on 2/5/20 = $100

Total Unpaid = $500

Generate A/R up to 2/21/20: Charge of $100 added ($500*10%*2)

Total Unpaid = $600

Another Payment on 02/25/20 = $100

Total Unpaid = $500

Generate A/R up to 3/15/20: (42 days since Printed date; 4 Full Periods)  

On the first two periods (02/01/20 – 02/20/20), a charge of $100 is calculated

Then a payment of $100 was made, so the total Principal amount = $400

On all periods after 02/20/20 (another 2 periods), a charge of $40 (10%* $400) for each period will be added, for a total of $80.

Total Finance Charges on 3/15 are $180

Total Unpaid on 3/15 is $400 (Principal Amount of $600 – $200 Payments) + $180 charges = $580

TIP: DeliveryMAX never calculates Finance charges on Finance charges.

Shared Between Sites

Ordinarily different sites are operated separately from each other. By checking this box you are enabling the sharing of Billing Terms information between separate sites. This would be a normal setting, since the Billing Terms that are offered are most likely set by corporate and offered to accounts across all sites.

Updated on February 3, 2021

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