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Overview

This article covers the trading terms features in Emersion.

'Trading terms' refers to the rules that are put in place that will determines when invoices fall due.  As different businesses has different types of rules, Emersion's system makes no assumption on what these terms will be, and each service provider is required to provide a default set of rules the system will use.  During onboarding, your onboarding project manager will ask for your standard default set of trading terms and set them up in the system for you when your service providers account is initially created. A service provider's default trading terms are inherited by all child (customer) accounts, unless they are overridden.

Trading Terms are an account attribute in Emersion. Read the article on account attributes to understand more about the inheritance pathways used by these features.

Override Precedence

A service provider's default trading terms can be overridden for:

  • A single customer account
  • Customers in an account profile

The inheritance path for this attribute type is : Customer → Account Profile → Provider Default → System Default

Therefore, if a customer belongs to an account profile with its own trading terms set, these are the trading terms that will be used, unless the customer's account also has different trading terms set. In this case, the customer's trading terms takes precedence.

The system default trading terms will ultimately be used if the service provider does not supply us with their own rules.

The system default setting is that invoices fall due 7 days after the issue date.

Trading Term Options


Overview

This article explains the trading terms in Emersion and how they are used to drive the invoice due date for each invoice created for a customer. 

'Trading terms' refers to the rules that will determine when invoices fall due.  Different businesses have different types of rules for trading terms. Often the rules vary for a customer, or group of customers based on some arbitrary criteria. For these reasons, Emersion's system makes no assumption on what these terms will be.

Each service provider is required to provide a default set of trading terms.

A service provider's default trading terms are automatically inherited by all child (customer) accounts, unless they are overridden based on the override preferences as set out below.

During onboarding, your project manager asked for your standard default set of trading terms.  These were configured when your service providers account was initially created.


Calculating Invoice Due

The trading terms are used in conjunction with the invoice issue date to determine the invoice due date.

The rule is as follows

Invoice Issue Date + Trading Terms = Invoice Due Date

For example

If an invoice is approved and issued to the customer on:

  • the 30th April and the trading terms is 14 days, the invoice will fall due on 14th May.
  • The 11th April and the trading terms is 14 days, the invoice will fall due on 25th April.


Override Precedence

A service provider's default trading terms can be overridden for:

  • A single customer account
  • Customers in an account profile

The override precedence can be explained in a simple diagram below.  If an override is found, the system takes this value, If the trading terms are not found at particular level, the system looks to the next place where an override might be configured.



The system default trading terms will ultimately be used if the service provider does not supply us with their own rules.

The system default setting is that invoices fall due 7 days after the issue date.


Trading Terms Options

Our system supports the following trading term options:

RuleExample
x days after the invoice issue date

7 days, 14 days, 21 days.

If '0' is entered, the invoice becomes due immediately after it is approved. This will trigger the Invoice Due event and send a notification to the customer (if enabled).

x day of the current month

Every month on the chosen date where the invoice covers the current period. If the date in the current month has already passed, the invoice will fall due on the same date in the following month

If the chosen date exceeds the number of days in the current month, the last day of the current month will be used instead. Eg. If 31 is chosen and the current month is June, the invoice due date will become the 30th June.

x day of the following month

Every month on your chosen date where the invoice will cover the previous period.

If the chosen date exceeds the number of days in the month, the last day of the month will be used instead. Eg. If 31 is chosen and the next month is June, the invoice due date will become the 30th June.

x days after the account invoice period end dateIf the account invoice period ends on the 31st, x days after.

Changing Trading Terms

If an invoice is already pending, any change made to the default or a customer's trading terms will not affect the pending invoice. Trading term changes will apply to invoices generated after the change is made.

What's in this section?


Licensing

This feature is available to subscribers of the following:  

  • Emersion Core
  • Optional Modules
  • Upon Request (please contact your Account Manager)



Features and How To's

This section contains articles on the functionality of this feature. 

Core Functionality

Feature Extensions

  • There are no extensions for this feature. 


Prerequisites

Before attempting to use this feature, users should:

Dependencies

There is no dependencies for this feature. It is a standalone feature in the Customer Management module.


Access Control

Powers

PowerDescriptionParent Power
Customer Create - Trading Terms - ViewCan see the default trading terms during the account creation processCustomer Create
Customer Create - Trading Terms - EditCan override the default trading terms during the account creation processCustomer Create
Trading Due DaysParent power for the trading terms powers related to editing customer details.Customer Details
Customer Details - Trading Terms - ViewGrants access to view the customer's trading terms under Customer > Details > Trading TermsTrading Due Days
Customer Details - Trading Terms - EditGrants access to edit the customer's trading terms under Customer > Details > Trading TermsTrading Due Days
Account Profile - Trading Terms - ViewGrants access to view the trading details for an account profileAccount Profile - View
Account Profile - Trading Terms - EditGrants access to edit the trading details for an account profileAccount Profile - Edit


Feature Events

There are no events related to the feature.

Feature Reports

There are no reports related to the feature.


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