To reflect the unique business practices of associations, Novi does not follow the normal QuickBooks convention of applying traditional payment terms like "net 30" to dues invoices, to ensure that revenue is booked in the proper period.
There are three different ways to set the payment terms for dues invoices that are generated in Novi.
- Automatic Renewals
- New Member Signups
- Manual Renewals
When it comes to automatic renewals, each Member Type has a setting available that will define a dues invoice's due date relative to the expiration date.
- Transaction Date = Expiration date + number of days on member type setting
The transaction date will determine when the revenue is booked into QuickBooks unless your accountant has setup a deferred revenue account. In other words, this will show as the invoice creation date.
For example, if your members expire on 12/31 and your member type setting is set to 1 day, the renewal invoices will appear as 1/1.
If they need to appear as an earlier date for your accounting purposes, you may put a negative number in the setting. For example, if your invoices are created 30 days prior to expiration, the transaction date setting on the member type should say -30.
- Due Date: Expiration date + number of days on member type setting
This is the due date on the invoice. It will affect what is shown as current vs outstanding on your A/R report.
Note that negative numbers will work in the settings above to trigger dates BEFORE the expiration date.
AE Tip™: Given that automatic renewals often occur 60 to 90 days prior to a member's expiration date, traditional "upon invoice" or "net 30" payment terms generally don't make sense for automatic renewals.
Example Member Type Settings:
New Member Signups
If a new member registers from the frontend of the website, or is added by an admin on the backend, their transactions are due on receipt.
- Transaction Date: Today
- Due Date: Today
When a staff member processes a manual renewal, or a member renews their membership from their Member Compass, dues invoices become due the day after expiration date, or today, whichever is greater.
- Transaction Date: Expiration date + number of days given in member type setting OR today, whichever is greater
- Due Date: The day after expiration date, or today, whichever is greater
NOTE: When a dues transaction is a sales receipt, their transaction date is equal to the day after their current expiration date or today, whichever is greater.
Should you want to change the terms on a particular dues invoice, this can always be done inside of QuickBooks. Simply find the invoice in QuickBooks and make the change.