Responsive terms

Responsive credit control terms automatically move customers between accounting terms based on an accounts’ past payment history. Before computing an account’s treatment level an account on responsive terms first evaluates a set of rules to determine which accounting terms apply to the account. These rules count the number of overdue invoices over the account’s recent past to determine the terms of the account. For example, if an account has sufficient overdue invoices in the past the account may move to more vigilant terms.

Before configuring responsive credit control you must first configure credit control terms. You can then configure responsive term rules which use those terms. For more information, see the Configuration Guide.

Responsive term rules are in the form of:

• At least X invoices owing $Y or more Z days after the due date in the last Q months results in a particular set of terms to apply to the account.

Rules are evaluated in the order they are presented in the Rules list. The first rule satisfied determines the terms to use. An account will move to less strict terms or return to default terms in time if the payment behaviour improves. If no rules apply, then the default terms will be used.

The Responsive terms tab provides a summary of the configured responsive rules sets.