Overview

The Payment Rules feature allows users to send invoices to different payment systems based on specific conditions. This can be useful for accommodating customer preferences, complying with local regulations, and optimizing transaction fees.

The typical use cases include:
Customer Location: Send invoices to different payment systems based on the customer's location. If there are customers in different countries, users might use different payment gateways to accommodate their preferred payment methods or to comply with local regulations. For instance, customers in Europe might be billed through a European payment processor, while customers in the US might be billed through a US-based processor.

Customer Preferences: Send invoices to different payment systems based on customer payment method preferences. Some customers may prefer to pay via credit card, while others prefer PayPal or bank transfer. Users can set up rules to send invoices to the appropriate payment system based on these preferences.

Invoice Amount: Use different payment systems for invoices of varying amounts. For larger invoices, users might prefer bank transfers due to lower transaction fees, while for smaller invoices, they might use credit card payments. For example, invoices under $1,000 could be processed through Stripe, while those over $1000 could be processed through QuickBooks.

Currency Considerations: Handle multiple currencies by using appropriate payment systems. If users deal with international customers, they might need to consider the currency in which they prefer to pay. Some payment systems are better suited for handling multiple currencies or specific currencies. For example, invoices in Euros might be processed through a European payment system, while invoices in USD might be processed through a US-based system.

Regulatory Compliance: Comply with industry-specific regulations by using suitable payment systems. Depending on the industry or the nature of the business, users may need to comply with specific regulations regarding payment processing. Certain payment systems might offer features or compliance measures that align better with these regulations. For instance, healthcare providers might need to use a payment system that complies with HIPAA regulations.

Manage Payment Rules

PERMISSIONS REQUIRED   Please enable the following permissions in the user role:    View Payment Rules Manage Payment Rules

Enable Payment Rules

• Navigate to Nue System Settings → Revenue Manager → Collections.
• Enable the Payment Rules option. A new section for Payment Rules will appear, displaying a list of configured payment rules.

 

NOTE    Please note that when the Payment Rule feature is enabled, invoices will be forwarded to external collection systems according to the active payment rules set up in your organization. If there are no active payment rules at the time an invoice is generated, it will not be sent to any external collection systems.

Create Payment Rules

Users can create payment rules following the below steps:

• Click on the ‘New Payment Rule’ button to open the payment rule creation popup window.
• Fill in the properties of the payment rule, including Name, Status, Start Date, End Date, and Description.
• Define conditions using the IF-THEN-OTHERWISE structure and select the collection system for each condition. The invoices match the conditions will be sent to the selected collection system upon activation.
• Click 'Save' button to save the payment rule.

 

NOTE    Please be aware that the payment rule applies to both invoices and credit memos when the Credit Memo feature is enabled. For instance, if your payment rule is set to send invoices of less than $1,000 (i.e., 'Amount < 1000') to Stripe, then credit memos with amounts under $1,000 will also be sent to Stripe.

Activate Payment Rules

You can set the status of a new payment rule to 'Active' when saving it, or you can click the 'Activate' button on the list to activate a draft payment rule. Once a payment rule is activated, it cannot be modified. If you need to make changes to an active payment rule, you must first deactivate it by clicking the 'Deactivate' button.

 

You can have multiple active payment rules in your organization, but these rules must not have overlapping effective periods. When you attempt to activate a payment rule, if the Start Date or End Date overlaps with an existing active payment rule, a validation error message will appear.

Example Use Case

Let's explore how payment rules function in the following sample scenario:

To minimize transaction fees, starting from December 1, 2024, your organization intends for customers to pay invoices under $1,000 online via Stripe. For invoices exceeding $1,000, customers will be required to pay by check offline. 

 

To implement this process, your administrator should follow these steps to configure the payment rule accordingly:

1. Enable the payment rules feature
2. Create a payment rule:
   • Name: Company Payment Rule
   • Status: Draft
   • Start Date: 01/01/2025
   • End Date: Empty
   • Description: Send Invoices less than $1,000 to Stripe
   • Conditions: Add a filter to the IF condition (Amount < 1000), and set the external collection system to 'Stripe', then select 'Do Nothing' on the OTHERWISE condition.
3. Activate the payment rule

 

NOTE    Please note that if you want the payment rule to begin in the future, you can set its Start Date to a future date. This enables admin users to configure the process in advance.

 

When the invoices listed below are generated and activated, the configured payment rule will apply. Only invoices with amounts less than $1,000 will be sent to Stripe.

 

 

If users attempt to manually send an invoice over $1,000 to Stripe, they will receive an error message, and the action will be blocked.

 

 

 

Putting It Altogether

The Payment Rules feature in Nue offers a powerful tool for customizing the payment process to meet the diverse needs of your organization. By utilizing this feature, you can tailor the payment process to align with your financial management strategies.

 

When you create or edit the payment rule conditions, the collection systems configured in your organization will be available as external systems. For example, if you have connected your organization with QuickBooks and NetSuite, you should see them as the target external system options when configuring the rule conditions.