AR glossary
What is Payment terms (Net 30, Net 60)?
Payment terms tell a customer how long they have to pay. “Net 30” means the full amount is due 30 days after the invoice date (or delivery date, if agreed).
Example
An invoice dated 10 January on Net 30 terms is due on 9 February. Paid on 25 February, it was 16 days late.
Why it matters
Terms set the floor for your DSO. If terms are Net 45 and DSO is 90, the gap is a collections problem, not a terms problem.
In Creditouch
Terms are set per debtor with a company default, and the due date can be counted from the invoice date or the delivery date.
See Invoices