Payment terms decide when a bill is due, whether an early-payment discount applies, and how MakersHub schedules payment, so getting them right matters. This article covers how MakersHub extracts and interprets terms as well as how to correct or train a vendor’s terms extraction so future bills come in clean.
Payment Term Details
The most common misunderstanding is the difference between a day count and a day of the month:
Day count - “Net 30” means 30 days from the invoice date.
Day of the month - “Net 30th” means the 30th of the month, no matter when the invoice was dated.
Prox (next month) - Prox terms push the due date into the following month.
MakersHub handles a range of standard net, day-of-month, and prox formats. If a vendor uses a term that isn't captured correctly, you can train it (below) or reach out to support@makershub.ai.
The following example showcases why the terms extraction matter. Here, the same “30” is resolved three different ways for a bill dated March 12:
Term | Rule | Due Date |
|---|---|---|
Net 30 | 30 days after the invoice date | April 11 |
Net 30th | The 30th of the invoice month | March 30 |
Prox 30 | The 30th of the following month | April 30 |
How to Train a Vendor’s Terms
MakersHub reads the payment terms off the bill during processing and displays them under Bill Details. If the extraction needs adjusting, you can define the logic in the Terms field and click the double checkmarks to execute.
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To review, adjust, or create vendor trainings, go to Data Extraction Utility > Data Extraction Training.
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To add a terms training for a vendor, you can Add an Adjustment, select Payment Terms from the list, then define the logic. If a Payment Terms training is already present, you can manipulate the logic to refine the result.
Example 1: 2% 10, Net 30
Apply a 2% discount when the bill is paid within 10 days of the invoice date; otherwise the full balance is due at 30 days.
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Example 2: 2% 10th, Net 25th
This is a day-of-month (prox-style) setup: the discount applies if paid by the 10th, and the standard due date is the 25th. Because these are calendar dates rather than day counts, you also define the condition that rolls a bill into the following month - for example, a bill received after the cutoff is due the 25th of next month rather than the current one.
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Discounts
When the terms are right, so is the due date and the early-pay discount window with it. See Payment Term Discounts for a step-by-step on applying them, and Set Your Net Terms Discount Account and Default AP Account to control which account they post to.
Need a Hand?
For additional support in training terms and calculating the correct due dates, please reach out to support@makershub.ai.