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Net D 

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.

Example

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.

Note
  • Metered Billing should be turned off
  • Click here to know more about Invoice statuses

Enabling Net D for Chargebee Invoices 

To include Net D as a payment term in your invoices,

  • Navigate to Settings > Site Settings > Site Info & Billing Rules > Payment Terms and click Enable Payment Terms.

  • The Choose Default Payment Term option will appear. This is a site-level configuration, and will be applicable for all Customers when enabled.

Set a default payment term here.

Enabling Payment Terms for a specific customer 

There are two ways in which you can set payment terms for a customer:

Web Interface

The payment term set in Site Info 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:

API

You can set the Payment Terms for a customer via the API, learn more   for details.

Information

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  .

Payment Terms in the Invoice 

Once you've enabled Payment Terms in Settings, 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 can enable the Show: Payment Terms and Due Date option from Settings > Customize Invoice & Credit Notes.

Search for Posted Invoices 

Now you can search for posted invoices using the Status = "Posted" filter via the web interface and the API.

Email Notifications 

You can enable the Net D - Payment Due Reminder email notification if you'd like to send a reminder to your customer before the invoice turns due for payment, under Settings > Configure Emails and Invoice > Email Notifications in your Chargebee site. You can also configure the email to be triggered a specific number of days ahead of the due date.

Note
  • When an invoice goes into Posted status, an invoice generated event is triggered.
  • When the invoice status changes post the due period, an invoice updated event is triggered.

FAQ 

  • 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.

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