Decide how long each customer has to pay, give them a credit limit, and see at a glance who is close to it or already late. You need this before you bill, because the credit term sets the due date of every invoice.
Click People › Customers › Credit terms (/app/customers/credit-terms). The workspace starts with four terms: Due on receipt, Net 15, Net 30 and Net 45, all Active. Click Add credit term. Type a Label (Net 60) and Days due (60, whole days from the invoice date), then click Save credit term. The toast says Credit term created. and the new row shows code NET_60.
Each row has an actions menu: Edit, Deactivate and Delete. Edit opens Edit credit term, where you update the label or days. A spare term Net 10 changed from 10 to 12 days reads Net 10 (12 days), with the same code NET_10. The toast says Credit term updated.
Deactivate works at once, with no confirmation: the toast says Credit term deactivated. and the row shows Inactive. The Credit terms list on the customer form then offers only active terms, so Net 45 is missing. Activate brings it back (Credit term activated.).
Delete on a term in use, such as Net 30, is refused: This credit term is assigned to customers or vendors and cannot be deleted. It shows as a red toast and a red line above the table. Delete on a term nobody uses removes it at once (Credit term deleted.).
One list feeds two places. First, the Credit terms field on every customer. Second, the Due date of every invoice that customer receives: it falls due the term's days after it is issued. In Money › Receivables › Invoices, INV-000002 was issued 26-Sep-2026 and is due 26-Oct-2026, INV-000003 was issued 06-Oct-2026 and is due 05-Nov-2026 (Net 30 each), and the deposit INV-000006 was issued and is due on 08-Oct-2026.
Click Add customer (Farhan Aslam). Choose Credit terms (Net 30), type Discount (%) as 5 and Credit limit as 6,000,000. The form checks both: a discount of 150 says Enter a discount between 0 and 100. and a limit of -5 says Enter a credit limit of 0 or more. Nothing saves until both are valid. After Save customer (Customer created.), Farhan Aslam appears with code CUS-0003, Net 30 (30 days) and 5%. Net owed, Overdue and Limit used show a dash because he has no invoices yet.
Tariq Mehmood has one issued invoice, so his Net owed is Rs 1,456,510. Against a limit of Rs 5,000,000, 29.1% used shows as plain text. Lower the limit to Rs 1,800,000 and an amber badge reads 80.9% of limit used. At Rs 1,000,000 it turns red: Over limit (145.7%). Overdue is its own column: Rs 1,456,510 - 3 days, counted past the due date.
Choose View, then Credit & Terms. It shows the term, the discount, the credit limit and a Receivables position: Outstanding A/R, Overdue, Oldest overdue, Credit limit used, Advances on account and Retention held. With a Rs 1,800,000 limit an amber banner says Net owed Rs 1,456,510 is 80.9% of the Rs 1,800,000 credit limit. and This is a warning only. An invoice that would go over the limit needs consent from an owner or accountant. The Invoices tab lists INV-000006: Overdue, Rs 1,456,510 outstanding, due 08-Oct-2026.
Open Admin › Settings › General (/app/settings/general). Credit limit warning (% of limit) is 80. The hint reads Customers show a warning once their net owed reaches this share of their credit limit. Change it to 25 and click Save changes (Settings saved.). Back in the directory, 29.1% of Rs 5,000,000 now shows amber: 29.1% of limit used.
Admin › Settings › Users has a read-only Role permission matrix. The Owner holds every permission. Project manager and Estimator can read customers. Accountant can read customers and holds payments:credit-override. Site supervisor has no customers permission.
| Mistake | What you see | Fix |
|---|---|---|
| Trying to delete a term in use | The red message that it is assigned to customers or vendors | Deactivate it instead |
| Expecting the limit to block an invoice | It only warns | An owner or accountant gives consent when an invoice would go over the limit |
| Typing a discount above 100 or a negative limit | The form refuses and stays open | Correct both values and save again |
| Looking for a deactivated term on a customer form | It is not offered | Activate it again in Credit terms |
| Item | Meaning / rule |
|---|---|
| Credit term | Days a customer has to pay; sets the invoice due date |
| Limit used | Net owed against the credit limit: plain, amber (warning), red (over limit) |
| Overdue | Amount past its due date and how many days late |
| Warning level | Percent of the limit at which the amber badge starts (80 by default) |
| Net owed | Open receivables less advances, retention not included |
Can I delete a credit term that customers use? No. Delete on a term in use is refused with the message that it is assigned to customers or vendors and cannot be deleted. Deactivate it instead.
Does the credit limit stop me from issuing an invoice? No, it only warns. An invoice that would go over the limit needs consent from an owner or accountant.
What does the credit term do to an invoice? It sets the due date: an invoice falls due the term's days after it is issued, so a Net 30 invoice issued on 26-Sep-2026 is due 26-Oct-2026.
How do I change when the amber warning appears? Open Admin › Settings › General and change Credit limit warning (% of limit). It is 80 by default, and the badge turns amber once net owed reaches that share of the limit.
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