The Back Office Software Suite (BOSS) supports a variety of invoice payment terms that can be configured during contract setup.
These terms determine how the system calculates invoice due dates and aging metrics. Among the supported terms are:
- Net 75
- 2/15 Net 45
These terms are selectable within the contract configuration interface and influence due date calculations without affecting the invoice amount itself.
Terms explained
Net 75
This term specifies that the invoice is due 75 calendar days after the invoice generation date.
Example:
If an invoice is generated on March 1, the due date will be May 15.
2/15 Net 45
This is a discount-based term. It allows the client to take a 2% discount if payment is made within 15 days. Otherwise, the full invoice amount is due within 45 days.
Example:
For an invoice generated on March 1:
- Payment by March 16 qualifies for a 2% discount.
- Payment by April 15 requires the full amount.
System behavior
Contract setup
During contract creation or editing, users can select from the available invoice terms. Once selected, the system uses the term to calculate the invoice due date based on the invoice generation date.
Invoice Due Date Calculation
The due date is computed as:
- Invoice Due Date = Invoice Generation Date + Term Duration
- For discount terms like 2/15 Net 45, both the discount deadline and the final due date are calculated and stored.
Aging and Reporting
The aging mechanism uses the calculated due date to determine how many days an invoice is overdue. This affects how invoices appear in aging reports and dashboards.