What happens when a customer invoice is marked with Terms?

When a customer invoice is marked with Terms, it establishes a due date for payment. The terms define the conditions under which payment should be made, such as the number of days until the invoice is due (e.g., "Net 30" indicates payment is due within 30 days). This setup is crucial for managing cash flow and ensuring that both the business and the customer have a clear understanding of when payment is expected. By specifying terms on the invoice, the business can effectively communicate the timeframe for payment, which is essential for accounting and financial planning purposes.

The other options suggest actions or consequences that do not typically occur simply by marking the invoice with terms. For instance, marking the invoice does not lead to automatic deletion or send an email notification to the customer, and while late fees could potentially be applied if payment terms are not met, this is not an immediate action taken when terms are set. Therefore, establishing a due date through terms is the primary and correct function of this feature on a customer invoice.