How does Payment Terms with Auto Collection "On" work?

Modified on: Thu, 20 Jul, 2023 at 5:39 PM

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Can we have invoices created with Payment Terms or Net D with “Auto collection” status as “On”?
How to create a subscription without a payment method keeping Auto Collection as “On”?


It is possible to have Auto collection as On and an online payment method on file for a customer record in Chargebee and still provide payment terms for first and successive renewal invoices. Please contact Chargebee support to enable the feature for you.

Payment terms (Net-D) - This feature is currently available on selective plans. Please refer to the plans and pricing page. If you are on our previous plans, then this feature is available on Rise and above plans.


Initially for any Chargebee site, Payment terms or Net ‘D’ applies only when the Auto Collection is turned off. However, once our Solutions team has exposed the feature to allow “Payment Terms” with the Auto Collection as “On”, you will find an additional check box option to enable Payment terms for “Online Payment methods” under Settings > Configure Chargebee > Billing LogiQ

Please note that once the option is enabled, it is not possible to disable it from the Chargebee UI.

The feature works similar to the Payment terms for Offline Payment methods, the only difference is that even after a customer has added a payment method, the Net D configured for the customer/subscription would still apply and the invoices created henceforth will be created in “POSTED” status.

You can choose default site level “Net D” days here, which will be applicable for customers with both Online and Offline payment methods.

When you create a customer

You will see that even when you choose the “Auto Collection” status to be “On”, the default site level payment terms would apply.

You can choose to override the site level Net D at the customer level.

This allows you to create a subscription without a payment method with “Auto collection” as On.

Note: Even after the addition of the payment method during the Net Days, the invoice will still remain in “POSTED” status and would only move to PAID status when the NET Days are over or you manually collect the charges for the invoice through the Chargebee user interface by opening the respective invoice and clicking on the “Collect Now” option - 

Even after the addition of the payment method, all invoices created for the customer would be created in “POSTED” status only. This allows you to provide your customers with a grace time to collect charges for their invoices even after the subscription renews.

Related articles and Documentation

Net D

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