Japanese Billing Cycle and Payment Terms
In Japan, most companies use a billing cycle based on the closing date and the payment due date. Similar to credit card payments, companies agree on a closing date with customers before starting business transactions.
The payment due date is fixed, which means that the number of days between the closing date and the payment due date varies, depending on how many days each month has. The payment due date is a combination of the day and month. You can edit and change the payment due date as needed.
You can define multiple payment terms for a Japanese customer, vendor or employee. This enables you to manage a customer’s, vendor’s or employee’s billing cycle depending on the business need.
Payment terms that you define for a customer, vendor or employee are applied to their corresponding transactions. Payment terms defined for a customer are applied to its invoices, sales orders, and credit memos. Those defined for a vendor are applied to its bills and credits. And payment terms defined for an employee are reflected in the employee’s expense report.
Customer transactions dated from the next day after the closing date of the previous payment term up to the closing date of the current payment term, are listed in a billing statement, which is sent to the customer at the end of the billing cycle. In NetSuite, this billing statement is the invoice summary. The invoice summary is generated and sent only to customers. This is not applicable to vendors and employees.
Vendor bills created will automatically indicate the Closing Date and Due Date according to the dates specified in the vendor's payment terms. Likewise, when you enter a vendor credit, the Due Date is automatically filled out with the date on the payment terms on the vendor record.
When applying Japan payment terms, you must disable any other payment terms that may affect the setting of the default due date in the transaction. For more information, see Setting Up Japan Payment Terms.
To create payment terms, see the following topics:
Related Topics
- Roles and Permissions for Using Japanese Invoicing
- Including Japan Localization Custom Fields in Custom Forms
- Japanese Billing Cycle and Payment Terms
- Japanese Invoice Summary
- Setting the Preferred Form for the Invoice Summary Record
- Setting Up Auto-Generated Invoice Summary Numbers
- Japanese Billing Cycle and Payment Terms
- Setting Up Japanese Holidays to Validate Payment Due Dates
- Generating a Japanese Invoice Summary
- Regenerating an Invoice Summary for a Customer
- Invoice Summary Generation Errors
- Customizing the Japanese Invoice Summary XML Template
- Invoice Summary Collection Calendar Report