Managing customer payments is important to keep your business cash flow healthy. One of the best ways to do this is by using Term Days (also called NET terms) in your customer billing profile. This guide explains how to set Term Days, what they are, and how they impact invoice aging and overdue tracking.

How to Set Term Days for a Customer

1. Go to the Customer Management section > Customers.

2. Select the customer you want to update.

3. In the Billing section, find the field labeled Term Days.

4. Enter the desired number of days (e.g., 30).

5. Click Save.

Once saved, all future invoices for that customer will use the updated Term Days. 

How Term Days Affect Invoice Aging Reports

Your system includes an Aging Report that shows payment performance.

How to Use the Aging Report:

1. Go to Accounting > Invoice.

2. Click on Aging Report.

3. Make sure the Aging Status column is visible (use the Columns button if needed).

The report shows:

• Paid invoices

• Overdue invoices

• Days past due 

• Term Days applied

What Are Term Days?

Term Days are the number of days a customer has to pay an invoice after it is created.

Examples:

• NET 15 → 15 days to pay

• NET 30 → 30 days to pay

• NET 45 → 45 days to pay

These terms set clear expectations and help avoid confusion with customers.

Why Term Days Matter

Setting Term Days affects several important areas:

1. Marks Invoices as Overdue
   When the Term Days pass, unpaid invoices are automatically marked as overdue.

2. Tracks Aging Days
   The system counts how many days have passed since the invoice was due, showing exactly how late it is.

3. Helps Forecast Cash Flow
   Knowing when payments are due helps your accounting team plan ahead and spot delays early.

4. Supports Credit Decisions
   Customers who often pay late can be flagged for reminders, adjusted terms, or prepayment requirements.

How Term Days Affect Invoice Aging Reports

Your system includes an Aging Report that shows payment performance.

How to Use the Aging Report:

1. Go to Accounting > Invoice.

2. Click on Aging Report.

3. Make sure the Aging Status column is visible (use the Columns button if needed).

The report shows:

• Paid invoices

• Overdue invoices

• Days past due

• Term Days applied

We hope this article was helpful. However, if you have any further questions, please don't hesitate to reach out to our Live Support.

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