Overview

This document is to explain the Grace Days feature and its use. Grace days allows a payment to be received on an invoice for a certain period of time after the actual due date with no penalty, or in this case finance charge, being assessed.

Procedures:

Grace Days can be found by clicking on Edit, Software Settings, then going into Company and Stores, Company Settings and selecting the Customers tab. Grace Days are only relevant in the assessment of Finance Charges. They allow for a payment to be received on an invoice for a certain period of time after the actual due date with no penalty, or in this case finance charge, being assessed.

For example, invoice A has the Terms of 2% Net 10. This means that if the discount is not taken, invoice A is due on the 10^th of the month. Payment for Invoice A is received and applied on the 14^th of the month. When the Finance Charges are assessed on the 25^th of the month, invoice A will not be affected as it was paid within the 5 day grace period. If Invoice A was paid on the 17^th of the month however, finance charges would be applied as the payment falls outside of the 5 grace day period.