Example: Prior to Invoice Date

Your company requires payment for goods prior to shipment. Set up a payment term that subtracts 10 days from the invoice date. Because the payment term is not dependent on a date range, specify –10 for the days to add.

Because the customer is prepaying for an item, the payment will be entered as an unapplied receipt until the invoice is generated. When the invoice is generated, it will be matched against the unapplied receipt. Allowing the calculation of due dates prior to the invoice date can help you manage prepayment billing. Additionally, you can use prepayment due date rules in installment payment terms if you need to manage different payment percentages in accordance with different due dates.