I have lately exploring some of the business meanings of the report we are creating for our customers. While loading and reporting i have noticed the column called Payment Terms which will contain values such as NET15, NET30, and NET60 etc. I know this is some kind of terms which an organization have with the Customer. But i dont know it is related to the Account Receivables. Please find the explanation on the articles i come across.
"An example of a common payment term is Net 30, meaning payment is due in the amount of the invoice 30 days from the date of invoice. Other common payment terms include Net 45 and Net 60 but could in reality be for any time period agreed upon by the vendor and the customer."
I have Payment Term with my Customer as well as my vendors. Payment term with the Vendor will be applicable for the Account Payables whereas the Payment Term with the Customer is to Account Receivables.