SECTIONSEstimate Payment Terms Overview
Estimate payment terms facilitate the estimation of revenue receipt dates rather than relying solely on billing cycles. This enables for the definition of custom payment durations through various offset methods, providing granular control over financial forecasting.
By viewing projected revenue receipt dates through the new Expected Payment Amount row in the Estimate Financial Summary, you can better manage your financial commitments by improving the accuracy of your cash flow projections. The Estimate Financial Summary also dynamically renders additional time periods if payment terms push expected revenue beyond the initial project end date.
Date Calculation
We calculate expected payment dates relative to invoice dates. By applying these terms at various levels, you can ensure that your financial projections align with specific contractual agreements.
The Estimate Financial Summary range is determined by whichever date occurs later: the estimate end date, or the latest billing milestone plus the payment term duration.
Payment Terms Record Hierarchy
You can apply payment terms to multiple record types:
- Estimate Billing Group
- Estimate Product
- Records Independent of Estimate Products
We follow a specific order of precedence to determine the applicable payment term:
- If an estimate product is associated with a billing group, then the group's payment terms take priority over the estimate product's terms.
- If no billing group is associated, then the payment terms on the estimate product are used.
- If the payment terms are not associated with a billing group or an estimate product, it defaults to the independent records payment terms set at the estimate level.
Financial Summary Impact
In the Estimate Financial Summary, payment terms applied to Time and Materials estimate products only impact related estimate vendor line items. Any labor costs for time and materials products are not affected by payment term offsets.