Welcome to Article 5 in the Organization Master Data Series.
This time, we’re focusing on two deceptively simple master data elements that have a direct and measurable impact on your bottom line: Currency and Credit Terms.
If your organization records in CargoWise are the foundation for operational accuracy, then currency and credit terms are the levers that drive financial accuracy. Get them wrong, and you’ll see the consequences in your AR/AP aging, cash flow, and even customer relationships.
đź“Š Why Currency & Credit Terms Matter
My finance background loves this part of organization setup—because when done right, it makes both the AR and AP team’s jobs significantly easier. The key is making sure these fields are entered, entered correctly, and maintained consistently.
A customer or a vendor should never be set up without knowing:
- What credit terms apply
- What currency invoices will be received in
This is especially true for agents.
It’s not enough to just tick the AR or AP box in the Category Type field—as we’ve discussed before, God is in the details. In this case, the details start in the AR and AP tabs of the organization record.
đź’ˇ Why the Details Matter
- For AP:
Correct credit terms and currency allow AP invoices to age properly and get picked up in the correct payment run. This helps prevent late payments, avoids service disruptions, and eliminates the manual work of figuring out when a payment is due.- The goal is to pay not early, not late—but exactly when required.
- This supports better cash-out management and forecasting of expected spend—provided the details are correct.
- For AR:
Setting up a customer means setting up their credit terms.- Credit terms drive accurate due dates on invoices.
- They allow you to send statements with proper timelines, enforce payment expectations, and provide accurate agings for leadership review.
- This ties directly into your credit policy—something we won’t dive into here, but that every company should have to ensure consistent terms across customers.
- For Currency:
This is especially important for agents and international partners.- If you will receive invoices in a foreign currency, select the correct currency in the master data.
- This drives the conversion on the Billing tab and feeds into reports.
- Getting this wrong can skew financial reporting, distort profitability analysis, and complicate reconciliations.
🚨 Common Pitfalls in CargoWise
1. Multiple Currencies for the Same Customer or Vendor
Different branches set different defaults—leading to duplicate accounts, conflicting invoices, and broken reporting.
2. Missing or Generic Credit Terms
Leaving terms blank—or defaulting everything to “0 Days”—creates chaos in AR/AP aging and undermines collection processes.
3. Inconsistent Setup Across Global Offices
Without governance, the same global account can be set up differently in each office, making consolidation a nightmare.
4. Overriding in Jobs Instead of Master Data
Changing currency or terms in a shipment or invoice instead of fixing the organization record leads to inconsistent financial reporting.
đź› Recommendations for Maintaining Consistency
1. Standardize Default Currency per Organization
Agree on currency rules across regions—especially for global accounts.
2. Establish a Credit Terms Policy
Define approved terms, require approvals for exceptions, and apply them in the master data—not on a shipment-by-shipment basis.
3. Govern Data Entry
Limit who can edit credit terms and currency fields to trained staff or a central data steward.
4. Audit Regularly
Quarterly audits to identify:
- Multiple currencies for the same account
- Missing or inconsistent credit terms
- Duplicates with mismatched details
5. Leverage CargoWise Validation Rules
Require currency and credit terms as mandatory fields before saving a record.
🧠The Takeaway
Currency and credit terms might seem like small fields—but they have big financial consequences:
- They dictate when and how you get paid.
- They determine whether AP payments are on time and cash flow is predictable.
- They shape financial reporting and leadership decision-making.
The good news? With proper governance, consistent application, and cross-office alignment, these fields can become some of your most powerful tools for protecting financial accuracy and efficiency in CargoWise.
ALL2S CONSULTING LLC 