> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt
> Use this file to discover all available pages before exploring further.
# AR & Invoicing
> Use AR & Invoicing to choose when invoices are created, how freight splits across partial invoices, the company default shipping terms, the fallback due days, automatic invoice email, account statements, credit memo expiry, and overpayment handling.
AR & Invoicing holds the company-wide defaults for billing customers: when Arcus creates invoices, how they are delivered, how long credits last, and what happens when a customer pays too much. Use it when you set up invoicing for the first time or change how the team bills partial shipments.
## Before You Start
* You need the **settings.view** permission to open the page.
* You need **settings.edit** to save. **Save AR & Invoicing Settings** is shown to every role that can open the page, but the server refuses the save for a role without **settings.edit**.
* Per-account settings always win over these defaults. A payment term, shipping term, or credit expiry set on a customer account applies to that customer.
## Open AR & Invoicing
1. In the deck, open **Settings**.
2. Under **Payments & Checks**, choose **AR & Invoicing**.
The breadcrumb reads **Settings > Payments & Checks > AR & Invoicing**. The page is also linked from **Settings > System > Approval Workflows**.
## Save Your Changes
The page saves all of its sections together.
1. Change the sections you need.
2. Click **Save AR & Invoicing Settings** at the bottom.
3. Wait for "AR & Invoicing settings saved".
If a value is out of range, a red message appears above the button and nothing is saved until you fix it.
## Invoice Timing
Choose when customer invoices are created during fulfillment.
| Option | What happens |
| ------------------------------------------- | ----------------------------------------------------------------------------------------------------------- |
| **On full fulfillment (default)** | One invoice per order, created automatically once every package has shipped. |
| **Per shipment** | A separate invoice for each shipment. Useful for partial deliveries and backorders. |
| **Invoice what has shipped (consolidated)** | One invoice when everything shippable has shipped; backordered items are invoiced when they ship. |
| **Manual only** | No automatic invoices. You create them from the order when you decide, including **Invoice Shipped Items**. |
**Freight on partial invoices** decides how the order's shipping charge is billed when an order is invoiced in more than one piece:
* **Bill freight on the first invoice**: the whole shipping charge lands on the first partial invoice, and later invoices carry no freight.
* **Spread freight across invoices**: the shipping charge is split across partial invoices by shipped value, and the final invoice takes the remainder.
## Shipping Terms
Shipping terms record when title and risk of loss pass to the customer. Your accountant uses them to decide which month a sale belongs in. Set the company default here; record a different term on an individual customer account when that customer has its own terms.
| Choice | Meaning |
| ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| **Not recorded** | Nobody has recorded the terms, so Arcus shows a blank rather than assuming one. |
| **FOB shipping point** | Title and risk of loss pass when the goods leave your dock. |
| **FOB destination** | Title and risk of loss stay with you until the goods arrive at the customer. |
| **Other** | Anything else, such as FCA or delivery on your own truck. A **What terms apply** field appears for a note of up to 500 characters. |
The note is kept only for **Other**. If you switch to FOB shipping point or FOB destination, the note is cleared when you save, because it described a different term.
Arcus stores shipping terms for your accountant to read. It does not use them to decide any posting date or accounting period today.
## Default Due Days
**Invoice due after (days)** is the fallback payment window when neither the order nor the account has a payment term. The default is 30. Enter a whole number from 1 to 365.
## Invoice Delivery
**Auto-email invoice on creation** emails the invoice to the customer when an invoice is posted. Customers can always view invoices in the Customer Portal.
When this setting has never been saved, Arcus emails invoices automatically even though the switch shows off. Saving the page with the switch off stops automatic invoice emails. You can still email an invoice by hand from the invoice.
## Late Fees And Finance Charges
Late fees are configured on their own page. Use **Go to Payments > Late Fees** to open it.
## Account Statements
**Send account statements** emails a periodic statement of open invoices, payments, and balance due to customers. When it is on, the section also shows a **Statement frequency** list and a **Next scheduled run** line.
The frequency you pick does not change the schedule today. Whatever you choose, including **Weekly (every Monday)** or **Bi-monthly (1st and 15th)**, scheduled statements go out on the 1st of each month, which is the date the **Next scheduled run** line shows. You can also send statements on demand from AR.
The **Monthly AR statements** switch on **Settings > Documents & Email > Email Configuration** takes precedence. This switch applies only while that one has never been saved. Each customer can also opt in or out on the account's Communications tab.
## Default Credit Memo Expiry
**Credit expires after (days)** sets how long a customer credit memo stays valid. Leave it blank for credits that never expire. An expiry set on a customer account takes precedence. Enter a positive whole number.
## Default Customer Payment Term
The company default payment term for new orders lives on **Settings > Payments & Checks > Payments**. Use **Go to Payments & Checks > Payments** to open it.
## Overpayment Handling
Choose what Arcus does when a customer pays more than the order total, for example after a discount is applied to a paid order.
| Option | What happens |
| ---------------------------------- | ------------------------------------------------------------------------------------------------------------------------ |
| **Ask each time (recommended)** | The order is flagged and a person decides between a refund and a credit. No money moves automatically. |
| **Always apply as credit on file** | Arcus issues a credit memo and adds the overpayment to the customer's credit balance for a future order. |
| **Always attempt a refund** | Arcus sends the overpayment back to the original payment method. Check and cash payments fall back to a person's review. |
## Messages You May See
| Message | What it means |
| -------------------------------------------------------------------------------------- | -------------------------------------------------------------------------- |
| "AR & Invoicing settings saved" | Every section on the page saved. |
| "Default due days must be a whole number between 1 and 365." | Fix **Invoice due after (days)** and save again. |
| "Default credit expiry must be a positive whole number or left blank (never expires)." | Fix **Credit expires after (days)** or clear it. |
| "Failed to save AR & Invoicing settings", or another reason from the server | Nothing saved. The most common reason is a role without **settings.edit**. |
## What Changes Elsewhere
* **Invoices**: invoice timing and freight allocation decide when invoices appear and what they bill. An invoice Arcus creates automatically follows the same accounting as one you create by hand.
* **Customer email**: automatic invoice email and account statements send email to customers.
* **Money movement**: the overpayment choice can issue credit memos or refunds automatically.
* **Customer accounts**: the account's Tax & Terms area shows whether its shipping terms come from the account or from this company default.
* **Audit trail**: each save is recorded in the Audit Log with the settings it changed.
* **Other open sessions**: when another admin saves this page, your page refreshes to show it.
## Related Articles
Create, send, and manage customer invoices.
Work open receivables, statements, and collections.
Issue and apply customer credits.
Turn customer notifications, including monthly statements, on or off.
Manage the payment terms customers and orders use.
Review order and purchasing approval controls.