Net D ("D" stands for "Days") is a form of payment term, and refers to the period within which a customer has to pay for their outstanding invoice (net amount) for the service/product received.
The Net D terms specify that the seller expects to receive the payment within a specified number of days after the service has been activated or product has been dispatched.
In Chargebee, you can set the payment terms starting 7 days through 90 days.
If you do not want to set a specific payment term, you can set it as Due Upon Receipt.
If the payment term specified for a customer or an invoice is Net 30, the total invoice amount is to be paid within 30 days.
In Chargebee, the option applies only when Auto Collection is turned off.
The following diagram explains the Invoice Status Life Cycle:
Say, you've set Net 15 for your payment term. When an invoice is in the process of being generated, Chargebee will check whether Net D is enabled for your site. With Net D enabled, the invoice now moves to Posted status. The customer can now make the payment within the defined term, which in this case is 15 days. When the payment is made within the 15 days, the invoice status is updated to Paid. If the customer fails to make the payment even after 15 days, status will be Payment Due or even Void based on the payment.
To include Net D as a payment term in your invoices,
Navigate to Settings > Configure Chargebee > Billing Rules > Payment Terms and click Enable Payment Terms
Choose Default Payment Term will appear. Set a default payment term here.
This is a site-level configuration, and will be applicable for all Customers when enabled.
There are two ways in which you can set payment terms for a customer:
Via Web Interface
Payment Term set in Site Info & Billing Rules will be applied to all customers who are paying via offline mode. That is, customers for whom Auto Collection is turned OFF. If the payment term needs to be modified for a specific customer, you have the option to set a different term for that customer:
Via API
You can set the Payment Terms for a customer via the API, learn more for details.
If you'd like to use a value (no. of days) for Net D that is not available on Chargebee, write to support@chargebee.com .
Once Payment Terms is enabled, invoices will be created in Posted status for Active subscriptions.
The invoice will also show what the payment term is (Net 15 or Net 30 days) and the due date for the payment, which is the date on which the invoice is generated + no. of days set as payment terms.
To display the Payment Term and Due Date in the Invoice PDF, you need to enable the Payment Terms & Due Date(Invoice Only) option under Settings > Configure Chargebee > Invoices & Credit Notes.
Now you can search for posted invoices using the Status = "Posted" filter via the Chargebee site and the API.
Chargebee can send emails to your customers informing them that an invoice has been Posted and when it's due for payment. These emails can be sent based on the version of email notifications enabled for your Chargebee site.
If you have Email Notifications V1 enabled for your Chargebee site, navigate to Settings > Configure Chargebee > Email Notifications and enable Net D - Payment Due Reminder. Customize Template option will let you configure the email to be triggered before a specific number of days.
If you have Email Notifications V2 enabled in your Chargebee site, configure the email notifications for Net-D by navigating to Settings > Configure Chargebee > Email Notifications > Invoices & Payments > Payments Terms (Net-D).
Toggling the switch will enable the email notification for Net-D Payment Due Reminder.
Click here to know more on how to configure emails in Email Notifications V2.
Will Net D configuration be applicable when Auto Collection is set to ON?
Payment Terms cannot be set when Auto Collection is set to ON and can be configured only when it Auto Collection is set to OFF.
What will happen when Auto Collection is set to Off and then updated to On?
If Auto Collection is OFF and the updated to ON, then Chargebee will check for presence of payment details stored against the Customer's billing information. If payment information (for instance, card details) are present, then collection attempt will be made. If payment is processed, Invoice will be marked as Paid else it will be moved to Payment Due status.
Can I change the Net-D Terms?
Yes, you can change the Net-D Payment Terms at the Site level. Subsequent invoices generated for customers with Auto Collection set as OFF will follow the new term configured. Existing invoices payment term will not be updated. You can also update the Net D term for a particular customer and new invoices generated for this customer will follow the new term.
