Payment Terms (Credit Days Function)

Hello Everyone,

I think I’m making a mistake somewhere. I’ve updated to version 10 and I created a payment terms with this value. “Credit Days=1 Day” assigned it to a party then created an invoice. The bill is overdue and I haven’t made payment against it. Now while I creating another sale invoice against that party, ERPNext isn’t preventing in any way.

If the credit days is 1 day, then the sale invoice should get paid within 1 day, otherwise I shouldn’t be able to create another one for that party!. That’s how it should work. Ain’t I right?

N.B: The credit days function in earlier version, that didn’t prevent me as well.

If the system doesn’t prevent me creating another sale invoice (like crossing the credit limit), then what’s the point having credit days as a feature? Forgive my ignorance.

I hope you will understand my issue here.

1 Like

Hi @fnrfarid
Payment Terms is used when you need multiple due dates. It doesn’t have anything to do with Credit limits.

Well, thanks. But What’s the function for “Credit Days” then?

Why isn’t anyone replying to this thread?

Credit Days is a basic function! How does it work in ERPNext?

You are probably talking of credit limit. You can set credit limit in customer master.

Why isn’t anyone replying to this thread?

Credit Days is a basic function! How does it work in ERPNext?

Find support lacking - why not help yourself say for eg

If search fails and you are in doubt just test it yourself.

But please share your learnings ok - that’s how community rolls here :slight_smile:

Dear @clarkej & @tundebabzy
Thank you for your replies.
I understand how credit limit works and it’s functionalities.

I’m asking about “Credit Days” function. It should work like “Credit Limit”.

Say, one of my employee invoicing a customer and I’m setting a 30 days period for him to make payment. Now, if the client doesn’t make payment within 30 days, our company policy is that, He can’t buy further items from us even if he has credit limit.

Now, even if someone tries to create another invoice, system should automatically prevent (like exceeding credit limit does), thus fails to invoice further.

We have “Credit Days” feature in “Payment Terms”, but it doesn’t really prevent me if this type of scenario happens while creating invoice.

I hope this will help.

Thanks :slight_smile:

Credit days its related to payment terms instead credit limit related to customer.


Thank you.

But, I was wondering if I could find a way to prevent further invoicing if the credit days exceeds.

I don’t think there is any inbuilt way for doing that at the moment. Perhaps you can open an issue to request it. I think it will be a enhancement to Credit Limit

Yes, there isn’t any built-in function like that. Creating this discussion thread was with the intention that people will discuss about their business policies and Credit Days function and how they want to use it.

Unfortunately, that haven’t really happened. Anyway, I just hope you understood my point and our company policy.

@fnrfarid the word credit got you! :slight_smile:

as i see credit days is helping me more in combination with the payment “due date” for an invoice that i serve to a customer than in any credit way. if you enter it, it sets the invoice due date automatic to the customers default credit days. the spelling of the headline is indeed confusing. maybe renaming credit days to “dafault due date” or renaming the headline to “credit limit and due date” would help?

Dear @philip, Thank You for your reply. Let’s say, it’s named Due Date, then what happens when that date is over and you still don’t get the payment. The customer has credit limit, so technically system won’t prevent from creating more invoices for that customer, right?

Hi guys…any updates on this?. We also have same situation in our company. We want system to prevent creating next invoice if any upstream invoices found not paid…

Hi, You can write a custom script to validate if the customer has any outstanding amount, then prevent from saving/submitting the invoice. If any previous invoice is unpaid, customer will have outstanding balance and you can use that to write the custom script.

This will help

thanks you so much :+1: