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: through new member signups, auto-renewals, and manual renewals.
New Member Signups
Payment terms for dues invoices created for new members or rejoining members treated as new are controlled directly on the Member Type.
Admins can configure these settings under Member Types > Settings Tab > Payment Terms for New Sign-Ups
Available options include:
Due Upon Receipt
Net 7
Net 14
Net 30
Net 45
Net 60
Net 90
These terms determine the invoice due date, while the transaction date remains the date the new membership is processed.
If Require Credit Card or ACH Payment on Frontend Signups & Renewals is enabled, payment terms are bypassed and dues invoices are due immediately at signup.
Membership Renewals
When it comes to auto-renewals, each member type has settings available that will define a dues invoice's Transaction date and Due date relative to the member's expiration date.
Member type settings on backend for dues invoices' Transaction and Due dates:
How dates display on a renewal dues invoice:
Transaction date (sometimes listed as Invoice date) = # of days before or after member's expiration date as defined in Renewal tab in the member type's settings that is identified as the day the invoice was logged.
The Transaction date will determine when the revenue is booked into QuickBooks Online (deferred revenue accounts can be used which will impact when revenue is booked). This is the date that is shown as the invoice creation date on the invoice.
If members expire on 12/31 and the member type setting says the Transaction date should display 1 day after the expiration date, the Transaction date on renewal invoices will appear as 1/1.
If the Transaction date needs to appear as an earlier date before the expiration date for accounting purposes, use the before condition in the dropdown.
If members expire on 12/31 and the member type setting says the Transaction date should display 30 days before the expiration date, the Transaction date on renewal invoices will appear as 12/1.
Due Date = # of days before or after member's expiration date as defined in Renewal tab in the member type's settings that identifies when payment due by.
This is the Due date on the invoice. The Due date impacts what is shown as current versus outstanding on A/R report.
If members expire on 12/31 and the member type setting says the Due Date should display 1 day after the expiration date, the Due Date on renewal invoices will appear as 1/1.
If members expire on 12/31 and the member type setting says the Due Date should display 30 days before the expiration date, the Due Date on renewal invoices will appear as 12/1.
If invoices are generated with incorrect Transaction and/or Due dates, recalculation can be performed to correct dates on open invoices.
Manual Renewals
When admins processes a manual renewal or a member renews on their own from their Member Compass, the dates on the dues invoice are determined as follows:
Transaction Date: Expiration date + the number of days indicated in the member type setting OR today, whichever is greater.
Due Date: Expiration date + the number of days indicated in the member type setting OR today, whichever is greater.
NOTE: When a dues transaction is a sales receipt, the Transaction date is the date of the payment.
Exceptions
Dues invoices generated by Novi follow automated date rules based on member type settings. However, there are exceptions:
Customer-specific billing terms can be set on the member/customer record. These override all other Novi settings except for dues invoices and sync to/from QuickBooks.
Existing dues invoices can have their payment terms modified directly in QuickBooks Online. Any changes will sync back to Novi AMS and the Member Compass™ after a manual or scheduled sync.
Related Articles: