Adding a New Credit Terms

You can create as many Credit Terms as you need (with special due period, charge rate, etc.).

To add a new Credit Term:

1. Click the New Credit Term button. The New Credit Term form appears on the screen.
2. Fill the form:
   1. Title - short but descriptive name of Credit Terms.
   2. Default - If this checkbox marked, this Credit Terms will be offered by default while creating new Accounts and applied when creating accounts from store.
   3. Order validity period - the maximal period of time an open Order can stay in the open state. After validity date an Order becomes cancelled automatically.
   4. Invoice due period - the period of time during which an Invoice should be paid.
   5. Invoice overdue period - the period that starts after an Invoice due period runs out. During an overdue period an Invoice is considered as overdue (and has the 'Overdue' status), however, the charged services are provided during overdue period. When the overdue period expires, an invoice status becomes 'Cut-Off'. Cutoff invoices cannot be paid unless Provider manually reopens it.
   6. Charge rate - penalty value (percents of Invoice sum). Applied on yearly basis. Calculated during an invoice overdue period. For example, if charge rate is set to 365%, then daily charge equals to 1% of Invoice total amount per day.
   7. Minimal charge - minimal penalty sum, regardless actual penalty sum calculated in accordance with charge rate.
   8. Credit Limit - the maximal amount an account can owe a vendor. While a credit limit is not overdrawn, a customer orders are completed automatically, before payment is applied. When a credit limit is overdrawn, ordered services are provided only after a corresponding order is paid. A special event is provided in Parallels Business Automation - Standard when credit limit becomes overdrawn - event ID 23 'Account credit limit has been overdrawn'. Both customer and vendor receive notifications when such an event happens. The actions over subscription (put on hold, etc.) can be set specially in the Event Manager. Credit limit can be also set per customer account and in this case the credit limit set in credit terms will be overdrawn by the value set in account properties.
   9. In the Subscription Expiration Terms section of the form, you can select the conditions of terminating the subscription after expiration or in case a subscription termination was requested by a customer. Select the termination periods next to each of subscription periods:

      Grace period - the period that starts after a Subscription period expires. The grace period can be considered as additional chance for a debtor to renew his (or her) Subscription. During Grace period, a Provider already has the right to suspend services. After Grace period runs out, a Provider terminates Subscription. By default, the minimal Grace period is one day.

      Expiration period - the period of time an expired subscription is stored in the database. After an expiration period is over, a subscription is deleted, i.e., all the data related to a subscription is lost.

      Renewal order period - The period of time remaining before a subscription expiration date when a renewal order is generated. By default, the minimal duration of the order renewal period is one day.

      Subscription Termination Terms - the period of time a terminating subscription remains in the Account Director > Subscription Manager > Subscriptions > Termination Queue. It is possible to explicitly set the method of subscriptions termination for each of the available subscription periods and for trial subscriptions, three variants of termination method are available for each. To select the termination method, set the option button to one of the variants:

   • Terminate manually. In this case a subscription will stay in the Termination Queue in the Terminating state until manual termination. This variant completely disables automated termination for a subscription.
   • Terminate automatically in a period. This option allows specifying a particular period of time in days, months, or years during which a terminating subscription will stay in the Termination Queue. When this period is over, a subscription is terminated automatically. After the option button is set to this variant, select a termination period units (days, months, or years) from the relevant drop-down menu and then enter a period duration into the field next to the drop-down.

     Terminate immediately. This option allows terminating a subscription automatically, right after a subscription termination is requested. In this case, a subscription is even not placed into the Termination Queue.

3. Click the Save button. To create another Credit Terms, repeat the steps described above.

Note: When creating a new Credit Terms, please remember that an Order validity period should exceed the Renewal Order Period. Otherwise, a renewal Order can be cancelled automatically before subscription expiration date.

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