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Automate trading terms / payment terms on customer invoices

Started by marg roy -   in Feature Requests | Completed

The contacts could be enhanced to hold trading term variables (qty and period) such as 7 days (7 x days), 30 days, 1 month (1 x calendar month) etc then this could be applied when adding a debtor or creditor invoices to automatically calculate due date.

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Two requests have emerged on this thread - please comment or vote on this thread for automated payment terms and please comment or vote for a way the date fields should calculate due dates on this related thread: Use the + tool in the due date box to calculate from the invoice date, not the current date
I agree. I mentioned at Xerocon.
 

Gavin Welsh  

I agree also - especially with creditors where they are all different.
 

Barbara Ford  

Me too. I have a client with multiple creditors using variations of "# of days after End of Month". The extra time taken to calculate the dates really adds up even though it may only be a couple of seconds per record.
 

Breandan Wolff  

Yes please. It is annoying to have to enter this on every transaction.
 

Marilyn Bryce  

+1 for me also. Very annoying when doing historical invoices (i.e. before today) to have to manually calculate the date every time.
 

Jacki Knight  

yes please...
 

Adrian Shiel  

Yes please, why does the other two (faceless programs) MYOB and Quick books have this feature and XERO does not, I know that XERO is a much better program than the other two, such a regular feature used and the guys at XERO have missed it, I look forward to it being included in the next upgrade
 

Laurie Radcliffe  

Merged: Facilty for Xero automatically calculating the due date on Purchase and Sales invoices

often clients send and receive invoices which say x number of days from invoice. I wonder if Xero would consider a facility whereby you could enter that figure and Xero would calculated the due date. A few other systems have that capability.
 

Kass Verjee  

Hey there, we do have this in both the invoice and due date fields now if you enter a number of days from today's date, e.g. put today's date in the invoice date field then in the due date field put +7 - Xero will calculate and display 7 days from today. More examples and other things you can put in the fields like 'y' for yesterday are listed on the page of Tips in our Help Center.
We do want to further develop the invoice/Contact settings to allow specific payment terms and number of days to pay to be set, but for now it's done on each invoice.
 

Catherine Walker (Community Manager)  

This is fine if the invoice is dated for today but if you are entering an invoice that is dated at the beginning of the month, then the calculated date is incorrect and so it has to be manually input. Also if you are lucky to have an account with a supplier that allows 60 days following the month end, it's very hard to work this out accurately. I would like your opinions on how to get round this situation.
 

Dawn Horan  

this is a definite requirement as I don't want to rely on staff to remember the due terms for each customer. This is one of those items that shows Xero as a 'sole trader' to very small company directed system and if Xero wants to target bigger companies (I am not convinced they actually do) then this needs to happen ASAP. I had a customer complain very loudly that they had agreed 90 day payment terms for a large project but the invoice went out at 14 days - they are one of 200+ customers.
 

Adrian Shiel  

+1 Please
 

Brendon McCarthy  

+1 also. Juggling different trading terms in Excel for customers who negotiate flexibility just doesn't feel right.
 

Joshua Smith  

I agree with Adrian that this is a basic and important requirement to be able to set up trading terms for each customer and supplier and that the date when the invoice is due would be automatically set using those terms. Having to check the terms for each customer when creating the invoice is VERY inconvenient.
 

Daniel Jaworski  

Agree- I also find this frustrating to check the terms of each customer when entering an invoice.
 

ACCOUNTS ACCOUNTS  

I agree - having a global setting of number of days for an invoice would be great, simple enhancement (I also have the issue of making invoices early). By account/customer term configuration would be useful.
 

Chris Johnson  

I agree aswell and when I asked on the Xero certification course as to why the + days feature is based on today's date and not the invoice date I was told by the presenter that it was easier to program that way!!!

It isn't hard to get a field to add a certain number of days to another field.
 

Paul Swinton  

As above we do need to introduce payment terms. The +[n] days feature now it simply a quick date entry that works in a generic manner for any date field in Xero, not related to other fields. As well as payment terms we will likely look at perhaps more keystrokes in date fields as a way of telling that field what the +[n] applies to, if not itself - just have to figure out how to keep it intuitive and simple. Definitely a great thing to introduce.
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For interest, what do you guys think is reasonable to type into a date field in Xero to tell it what to calculate +[n] from, given there are various dates fields across different types of transactions in Xero?
 

Catherine Walker (Community Manager)  

Most common I find is Invoice Date +30 so I+30 (or any +day variant)
Also 21 days from End of Month so E+21

I've come across 2nd Friday from invoice date but they tend to get paid when I feel like it!
 

Adrian Shiel  

Yes, as a default it should be Invoice Date to calculate the due date. In some instances the terms are end of the following month from the Invoice Date.
 

Daniel Jaworski  

I have tried this in our system but find it does not calculate the correct date (using Adrian's suggestion above). Would love this to be a permanent feature of Xero instead of having to rely on manually calculating it using a calender.
 

Dawn Horan  

I agree with all the above - when is xero going to add payment terms to contacts and then apply these to the due date when the invoice is raised.
 

Neil Laird  

I find the dating of invoices difficult. I always put on a draft invoice when I receive an order, then convert this to invoice when the goods go out. The problem is I then forget to redate this and therefore the invoice is dated and due a week before the customers receive their goods. Could we either have sales orders or be able to enter draft invoices without dates so you are then prompted to put in the right date on conversion
 

Diana Church  

Please
 

Simon Leek  

+1 this would help a great deal
 

Chris Dixon  

This is definitely needed!

Agree the following would be the easiest for these

I & the number of days = I+30
Then M & the number of days for month end = ME+30

Also having the option to set the terms in the contact would be helpful.
 

Paul Swinton  

+10
I cant believe we cannot add terms to client accounts and invoices just set the due date (with option to change if required)
The more I use Xero the more I realise how weak it is and missing so many LITTLE things that make such a big difference.
 

Luke Burrell  

Yes!
 

Nigel Godfrey  

Yes please!!!!- that would be soooo helpful and time saving.
 

Julie Low  

I have many clients requesting this. This would be handy and a great time saver.
 

Jesseca Lohmann  

I so agree with the comment left by Luke above. I am now realising that it is a system that cannot be used on its own. It can only function using other programs as back up. Most features that have been discussed in other forums are standard issue with many accounting programmes and yet Xero seems to have missed them out completely.
 

Dawn Horan  

+1

Should also be able to set a default term for each customer so that when you raise an invoice for a customer it automatically works out the due date from from the invoice date and payment term set up for the customer.

Same goes for Suppliers. Once set-up it can speed up data entry a bit on accounts payable as well.
 

Mark Burgunder  

Surprised this wasn't included years back. Maybe I am missing something. Wouldn't adding a payment term field within Invoice Branding which can therefore be manually assigned within each contact be a very simple solution. If there is a better way please, please, please, go and do it now !!!
 

Garth Dryland  

C'mon Xero ... the fizz in the Xero champagne is quickly disappearing as the marketing hype gives way to the reality that many essential pieces of functionality are not there. Don't make us partners look silly ... Saasu just might win a few converts.
 

Darren Jones  

Does anyone from Xero Team even look at those comments?! There was a comment in March from Community Manager but that is it!
The issue has been highlighted over half a year ago and nothing has been done and considering how inconvenient the issue is it is unacceptable.
 

Daniel Jaworski  

Temporary Solution to Automating Trading Terms

This is what I have done to get around the issue of automating trading terms. I don't see it as the best way possible but it works okay while this feature is not available.

I first copied my currently working invoice template and then created three additional ones from within "Invoice Branding' which therefore replicate the look I require.

I then updated each template to reflect the trading terms I require which I then specified in the "Terms & Payment Advice" field. Mine for example are follows;

1. Terms of Payment: Net 30 after EoM
2. Terms of Payment: 20th of the MFI
3. Terms of Payment: Strictly 7 Days
4. Terms of Payment: Prepaid

I then assign the respective template to each entity from within the contacts.

It’s kind of simple but maybe not realised by all. Hopefully it helps someone.
 

Garth Dryland  

@Garth Thanks for this suggestion in the meantime - it's a good one.

@Daniel Yes I look at these comments all the time, every day. And pass them back to the appropriate people at Xero to make sure you're heard. On this thread, there is no update or useful comment I can make on top of what I've already said - I know it's frustrating that you expect automated trading terms and they're not there. We know this and it's on the huge To Do list and we will get to it as soon as we can. I know this isn't the answer you want but we have so many feature requests and improvements (not only to the product but also our databases and environment) and we're juggling to get through them. Thanks for your patience.
 

Catherine Walker (Community Manager)  

Hi Catherine,
I think there has been plenty of useful comment to support the request for automated trading term calculations.
The crux is terms can be automated by introducing two variable fields on the contacts table (needs to be here as terms are variable at the client level) whereby people can set the denomination such as Days, Month and then a measure of that denomination. EG
7 D (days) for 7 Day trading terms
1 M (Month) for 1 month terms
Note there have been discussions re some month end terms plus a number of days but again only variables that can fall into the above format.

The terms are then applied after the contact has been added to the invoice and the invoice date has been entered, at that point there you have all the data you need to then calculate the due date. Still enable edit on this field if there were a unique trading term required. This would save significant time and eliminate any data/calculation entry error.

The issue with using the current Xero functionality you have suggested is you have to know each clients trading terms, time consuming and open to errors, getting your trading terms wrong can be significant. It is a manual process with a shortcut to enter a date, it is not an automated trading term solution.

Appreciate the demands on development resources and trust Xero will review.

 

marg roy  

+1

I'm getting the feeling this forum is to vent frustration and try make ourselves feel better. I am yet to see any suggestions on this forum be rolled out since it opened its doors.
 

Luke B (w)  

+1
 

Luke B (w)  

+1
Please also include a 'proforma' option for payment prior to shipment of goods.
 

Nina Sturgess  

+1 absolutely!! Please this is very annoying
 

Jeanette Korporaal  

+1 I need to be able to apply interest to overdue accounts based on terms
 

Bernice Daniels  

Hi everyone - by way of update since we've introduced voting features and a way for us to indicate status on particular threads - you'll see we've started work on automating the payment/trading terms on invoices - can't be sure of the release date just yet.

Please note there are a couple of items being requested on this thread - could I ask that people comment or vote for trading terms on this thread and use the existing thread about how the invoice date field +n calculation works for commenting or voting on that. Thanks.
 

Catherine Walker (Community Manager)  

+1
 

Eva Kaupp  

Hi. This discussion has now been going on for about nine months. Is it not time either Xero put it to bed, or act on it.
 

Kass Verjee  

+ 1 urgently needed
 

Dawn Horan  

Probably the most basic function available in every other accounting package I have used, which allows you to select a pull down and just enter the days. Most other packages also allow you to specify this in supplier and customer cards. Extremely basic function and very urgently needed.

PrePaid, COD, # Days Net (from invoice date), # Day EOW (end of week), # Days EOM (end of month).

 

Jason Crowle  

+1

Individual customer level would be brilliant. But could settle for a company wide term.
 

Perth Systems Pty Ltd Accounts  

I couldn't believe when I started using Xero that it didn't have terms.

+3 (for all our accounts staff)

Also, the due date should be invoice date + terms. Why would it be anything else but?
 

Skeeve Stevens  

Here is my suggestion for putting in due date
+120 = next month on the 20th
+220 = in 2 months on the 20th (essentially 60 days)
As both of these are above 90 and no company I know of gives more than that for spreading payment (indents for eg) then it would not interfere with the normal usage.
 

Michele Cozens  

++++++1

All our customers trade on a variety of terms and I was surprised to not see the field on the Accounting options for the contact/customer. I don't think a file wide term is a solution, as most businesses will have customers on a variety of terms depending on what you negotiated. Ours range from COD, X Days from Date of Invoice to X Days after the End of Month in which the invoice was raised (common in construction). This update is required urgently as we currently have to run spreadsheets with customer terms listed to crosscheck against when raising invoices. Whilst I am happy generally pleased since moving from MYOB, I did notice most basic off-the-shelf accounting software include this function.
 

Nathan Kedwell  

Payment terms done! Here's the update on our blog and how to set payment terms in Help Center (globally or on an individual contact).

I'm going to mark this request as 'Complete' - all your votes will be returned to you and the voting element of this thread will be closed. If you have any new requests you'd like to be able to collect votes on, please raise a new feature request. Thanks!
 

Catherine Walker (Community Manager)  

Thanks Catherine ... very much appreciated.
 

Darren Jones  

Thanks Xero....entering invoices is even easier and eliminates errors in due date entries...very good for cash flow management.
 

marg roy  

There have also been some updates to the date entry short cuts - we've updated this table in Help Center so check out the full range available!
 

Catherine Walker (Community Manager)  

please can you add the option for "number of days from the end of current month" to payment terms. I had it in MYOB! Thank
 

Alan Gilbody  

Hi Alan,

Isn't that just the "of the following month" option

i.e.

20 days from the end of the current month

would be

20th of the Following month.

Apologies if I am missing something?
 

Paul Swinton  

I need to post 60 days from the end of the current month though - so unfortunately that will not work. The frustrating thing is that it exists as an option in MYOB!
 

Alan Gilbody  

I so agree with the last comment. Xero still has a long way to go to be able to suit everyone. I find the whole system quite time consuming compared to others I have used.
 

Dawn Horan