View Full Version : Creating Net 30/60 terms
11-04-2003, 11:32 PM
Does anyone know if terms such as Net 30/60 can be set up with Quickbooks? It seems that the only terms that can be set up would be either a straight Net 30 or Net 60 or a date driven one.
Any input would be appreciated. My business relies mostly on terms such as this and it's very hard to keep track of receivables.
Thanks in advance.
11-05-2003, 08:25 AM
as far as i am aware you can only create net 30 or net 60, and not net30/60
11-05-2003, 12:17 PM
Thanks for the reply. If in case you do find a way, please inform. Appreciate it.
11-05-2003, 02:39 PM
What are the specifics of the Net 30/60 terms you have? You are correct that the quickbooks will only do one or the other...
11-05-2003, 05:15 PM
An example would be an invoice dated Nov. 4, 2003 for $5000.00. Payment terms: Net 30/60. Therefore, 1/2 of invoice ($2500) would be due Dec. 04, 2003 and the other 1/2 due on Jan. 04, 2003.
So, when an aging report or a statement to the customer is processed say Dec. 31, 2003 and no payment has been received, it should show that for this particular customer & invoice, $2500 is <1 - 30> days late, and the other $2500 is actually current.
Right now, we have no choice but to enter the invoice as a Net 60 on the terms field. Entering it as Net 30 would not work because then after 30 days if payment has not been received, the entire invoice will show past due, which in reality, only 1/2 is past due. Most likely causing a lot of phone calls from concerned customers.
I hope this helps describe my situation. Thanks to all in advance for reading and trying to help.
I haven't tried this. I make no claims for it suiting your needs. BUT - if you are billing several high dollar items, rather than 22 page invoices, you might try this.
First, you can have several different terms. You can Net 30, Net 60, Net 90, etc. I have personally bought stuff with terms of 90 days no pay, then 9 equals, so there are all sorts of terms in the world of business.
Anyhow, you could bill half on Invoice 12345A with 30 days net and half on Invoice 12345B with 60 days net.
You could refine it from there by setting up an Item called Deferred Billing. Enter the full amount on Invoice A, then enter a negative amount under the Item Deferred Billing. You could have an Asset account set up, but you're just going to be in and right back out.
Then, do the Invoice 12345B, billing Deferred Billing for the balance. You could even come down a line and in the Description column enter the original Invoice and date.
If you do 30-60-90 terms you could handle the same way.
Now, if you bill 345 invoices a day, all at 30-60 terms, youve got a chore. If this is something that happens a couple times a day, no big deal.
11-05-2003, 06:28 PM
Thanks for the input. I'll give that a try & see how things go. I kinda thought that would be the route to go.
Am I the only few that uses these terms? I wonder...You would think qbooks would have created a plug-in by now...
Anyhow, thanks to all. any other input will be gratefully appreciated.
Actually, 30-60-90 days terms, also called "dating" are common in some industries. In others, much more complicated terms are the norm.
They offer what are called Anticipation Discounts. Bicycles are sold thios way. Here's an example -
Right after Christmas a bike shop takes delivery of a large order of bikes. The terms are let's say 1/6 Mar, 1/6 Apr, 1/6 May, 1/6 June and 1/6 July. Possibly even a 2% 10th Prox terms where they get 2% discount if paid by the 10th of each month, or pay net if check is mailed after 10th. Not too hard to grasp. But here's where it gets hairy -
The shop can get a discount of let's say 10% by paying the whole balance in Feb, or 9% for payment in full in Mar, etc. These are the anticipation discounts that actually reward for early payment.
Not a QB kind of thing. :)
11-05-2003, 11:46 PM
any idea if other software offers this type of dating?
(Sorry to the mods if this question is not allowed - you can delete if necessary).
Some must, since these terms are used in many industries.
I haven't used Peachtree in some time, so I can't say for sure. Some of the higher end programs like MAS 90 probably are more flexible in the terms / dating area.
Also, if you are in an industry where the 30/60 day terms are common, you might find an industry specific program that is set up properly for your type business. There are many of these vertical market programs, devoted to a very limited customer group that handle all of the ins snd outs of specific business types. They are often found in the advertising area at the rear of trade publications.
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