Glossary
Plain English meanings of the words you'll meet when getting invoices paid.
Overdue invoice →
An overdue invoice is one that hasn't been paid by its due date.
Unpaid invoice →
An unpaid invoice is any invoice that hasn't been paid in full, whether or not it's due yet.
Accounts receivable →
Accounts receivable is the money customers owe your business for work or goods already delivered.
Aged receivables →
Aged receivables is a report that groups what customers owe by how late it is.
Days sales outstanding (DSO) →
DSO is the average number of days it takes your customers to pay you.
Payment terms →
Payment terms are the agreed rules for when and how an invoice must be paid.
EOM terms →
EOM means end of month. "30 days EOM" means payment is due 30 days after the end of the month the invoice was issued.
Late payment fee →
A late payment fee is a charge added when an invoice isn't paid on time.
Letter of demand →
A letter of demand is a formal written request to pay a debt by a set date, before taking further action.
Small claims →
Small claims are lower value debt disputes heard by a state or territory court or tribunal, with simpler rules and lower fees.
Statutory demand →
A statutory demand is a formal notice under the Corporations Act requiring a company to pay a debt within 21 days.
Security of payment (SOPA) →
Security of payment laws give people who do construction work a fast legal way to claim progress payments.
Payment claim →
A payment claim is a written claim for a progress payment made under security of payment laws.
Payment schedule →
A payment schedule is the written reply to a payment claim saying how much will be paid and why any amount is held back.
Adjudication →
Adjudication is a fast, independent decision on a disputed construction payment under security of payment laws.
Bad debt →
A bad debt is money owed to you that you've decided you can't recover.
Debt collection →
Debt collection is recovering money that's owed, either by the business itself or through an agency.
Promise to pay →
A promise to pay is when a customer commits to paying an invoice by a specific date.
Part payment →
A part payment is when a customer pays some of an invoice but not all of it.
Remittance advice →
A remittance advice is a note from a customer telling you which invoices a payment covers.
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