#### The Default Credit Terms

The default credit terms is very important setting for the billing system. Credit terms define the order of settlements with your customers. Credit terms are assigned per account. At least one credit terms must be defined for you to create new accounts. And one of the credit terms must be set ad the default one. This credit terms will be used for all accounts created by your customers during registration in your online store. If you later create several credit terms, you can re-define credit terms on per account basis.

Please fill the fields necessary for the default credit terms creation:

1. Title - short name of Credit Terms, to refer to.
2. Basic settings:

- Order validity period - the maximal period of time an open Order can stay in Parallels Business Automation - Standard. The order validity period starts when an initial order or a renewal order is created. After validity date an Order becomes cancelled automatically. It is not possible to re-open a cancelled order.
- Due period - the period of time during which an Invoice should be paid. The due period starts right after an invoice is generated. If an invoice is still not paid by the due period end, such invoice such invoice becomes overdue and the overdue period for an invoice starts.
- Overdue period - the period that starts after an Invoice due period is over. An Invoice is considered as overdue, however, the charged services are still provided during overdue period. After the overdue period is over, an unpaid invoice becomes cut-off and disabled for payment. However, the cut-off invoices can be reopened and paid.
- Charge rate - the penalty amount (percents of Invoice sum). Applied on yearly basis. Penalty is calculated during an invoice overdue period. For example, if charge rate is set to 365%, then daily charge equals to 1% of Invoice total sum per day. Charge rate is used to calculate the Overdue invoices amount.
- Minimal charge - minimal penalty amount, regardless actual penalty calculated in accordance with charge rate. Minimal charge is used for Overdue invoices amount calculation in case the charge rate amount is too small.
- 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.

1. Subscription expiration terms:

   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.

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