Payment Terms vs. Credit Limit in TapGoods PRO

Payment Terms vs. Credit Limits in TapGoods PRO

In TapGoods PRO, users are provided with a variety of ways to take Payment from Customers along with ways to extend Payment when needed. Payment Terms are an agreement between your business and a Company in which a timeline or certain conditions are set for Payment; these are set up in Order Settings. Credit Limits are a credit extended to AR Toggled Companies that will be used in place of payment for a predetermined amount of time before Payment is due.

Payment Terms

Payment Terms can be applied to any Order or Company in TapGoods PRO. When a Payment Term is applied to an Order, it is a notation of the conditions that are attached to Payment. Payment Terms in TapGoods PRO are Customer facing. TapGoods PRO users can set Payment Terms as…

• Custom: Custom Payment Terms serve as a note that will appear on invoices to clients that qualify for Payment Terms (i.e. 50% of total due to reserve items, remaining balance due 30 days before event start date). This Payment Term will be shown on Customer statements, but clients will NOT be alerted based on time remaining before payment is due.
• Dynamic: Dynamic Payment Terms are a set time period in which the Company is permitted to use the Credit Limit on their account for Payment of the Order; once this time period has passed, Payment is due. (i.e. Net 30 days). These Payment Terms are shown on Customer statements and will trigger payment alerts for the Customer based on the configured times in Order Settings.

**Note: Custom Payment Terms are not tracked within TapGoods PRO while Dynamic Payment Terms are tracked and can trigger Payment alerts to Customers**

To add/change Payment Terms in an Order…

1. Either Create a New Order or edit an existing Order.
2. Navigate to the Options, Discounts & Fees tab.
   
   
3. Click the dropdown arrow next to Select Payment Term.
   
   
4. Click on the desired Payment Term.

If the Company associated with an Order has a Payment Term already configured in Company Details, the Payment Term field will default to the Payment Term assigned to the Company. You can manually change the Payment Term in the Order, and it will not impact Company’s default settings.

It is important to note that if the Company attached to an Order with a Payment Term applied is NOT an AR Toggled Company, TapGoods PRO will not track the Payment Terms associated with the Order. 

To add a Payment Term to a Company…

1. Navigate to the Companies page.
   
   
2. Click on the Company.
   
3. Click on the dropdown arrow next to Payment Limits, Terms, Invoice Dates & Statements Info.
4. Under Payment Terms, click Add New Term.
   
   
5. In Select Payment Term, click on a Payment Term.
   
   

**Note: Payment Terms must be set up in Order Settings before adding Payment Terms to a Company.**

Once a Payment Term has been applied to a Company, the Payment Terms field in the Order Form will automatically convert to the default Payment Term attached to the Company. This will NOT impact previously created Orders.

Credit Limit

A Credit Limit in TapGoods PRO is a Credit extended to a Company that will be used for Payment on Orders, with the condition that the money will be paid back. Credit Limits can only be applied to AR Toggled Companies, and the platform will track money owed to the business through Credits utilizing Credit transactions. 

To add a Credit Limit to a Company…

1. Navigate to the Companies page.
   
   
2. Click on the Company.
   
   
3. Toggle AR Company ON.
   
   
4. In the Enabling AR Company pop-up, input the value for the Credit Limit.
   
   
5. Click Submit.

Once a Credit Limit is set for a Company, you can utilize the Credit applied to the account for payment. This will be tracked in TapGoods PRO and can be pulled on Reports. 

When a Credit is utilized to make Payment on an Order, it is called a Credit Term. When a Company uses a Credit Term to pay for an Order, it will subtract from the Credit Limit. Credit Terms are used for Payment in the Billing tab of an existing Order.

To use Credit for payment on an Order…

1. Create a New Order.
   
   
2. Add an AR Toggled Company to the Order.
   
   
3. Add Inventory and a Delivery method to the Order and Create the Order.
4. Navigate to the Billing tab of the Order.
5. In Payment, select Credit Term as the Payment Method.
   
   
6. Select Submit Payment.
   
   

Once a Credit Term has been applied to an Order, it will reflect in the Remaining balance on the Company’s Credit Limit.

Related Articles

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• Auto Convert AR Orders
• How To: Add a Credit Limit to a Company in TapGoods PRO