Payment Terms

Intro – Payment Terms

Payment terms are the conditions agreed upon between a buyer and a seller that dictate how and when payment will be made for goods or services. They are typically included on an invoice to inform the customer of the payment expectations. With the Payment Terms, you can manage or customize payment terms to fit your specific business needs.

Create a New Payment Term

• Go to Accounts on the left sidebar, and select Payment Terms
• Click Add New button in the top right corner.
• On the new term page, fill in the following fields
  • Term Name: Enter a unique term name.
  • Description: Describe the purpose of this payment term.
  • Is Specific Date:
    • Standard: When this option is unchecked, the due date is a number of days after the invoice date, such as Net30.
      • Due Days: Enter number of days such as 30.
      • Discount Days: Enter the specific number of days within which a customer must pay an invoice to receive an early payment discount. (optional)
      • Discount Percent: Enter discount percent for early payment.
    • Date Driven: Check this option, the due date is set to a particular day of the month, such as Due 25th.
      • End of Month: Sets the invoice due date to the end of the current month, regardless of the invoice date.
      • End of Next Month: Sets the invoice due date to the end of the next month, regardless of the invoice date.
      • Day of Month: Enter day of month. 30th or 31st are considered as the end of month.
      • Due Next Month if within (days): If the invoice date falls within this many days of the current month’s due date, the payment is automatically scheduled for the next month. (optional)
      • Discount Days: Enter the day of month which a customer must pay an invoice to receive an early payment discount. (optional)
      • Discount Percent: Enter discount percent for early payment.

• • Click Save