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In this article, you will learn how to add, edit, and manage payment terms and assign them to your customers.
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Add Payment Terms
To add a payment term, do the following instructions:
Go to Setup and select Settings.
Click on Payment Terms in the Account Receivables group of settings.
Click on Add a new payment Term.
Fill in the information on the payment term.
Name. The term's name (Net 30, Net 60, Due on Receipt, etc.).
Prepaid. Mark this option if the customer has to pay in advance.
Credit Period. Credit period length in days.
End of the month. Start payment term on the last day of the month of the invoice.
Optional: Add a payment discount for invoices paid within a determined timeframe in percentage. This discount will be displayed on the Receive a Payment screen.
Click on Save.
The payment terms are used to calculate the invoice due day in commission reports.
Recommended Configuration for Standard Payment Terms
Standard Term Name | Description | Example Configuration |
Net 1 | 1 day credit period | Credit Period: 1, EOM: No |
Net 1 EOM | 1 day after month end | Credit Period: 1, EOM: Yes |
Net 7 | 7 days credit period | Credit Period: 7, EOM: No |
Net 7 EOM | 7 days after month end | Credit Period: 7, EOM: Yes |
Net 15 | 15 days credit period | Credit Period: 15, EOM: No |
Net 15 EOM | 15 days after month end | Credit Period: 15, EOM: Yes |
Net 30 | 30 days credit period | Credit Period: 30, EOM: No |
Net 30 EOM | 30 days after month end | Credit Period: 30, EOM: Yes |
Net 45 | 45 days credit period | Credit Period: 45, EOM: No |
Net 45 EOM | 45 days after month end | Credit Period: 45, EOM: Yes |
Example: How does the system calculate the period?
In this example, the credit period is 30 days, and the End of the month setting is enabled:
Invoice Date: 08/14/2020
Commission Report Invoice Due Date column will be: 10/13/2020
The first day to start counting the 40 days in the credit period is the last day of the month of the invoice (August 31st).
Manage Payment Terms
You can edit or delete existing payment terms from the same settings group.
Edit a Payment Term
To edit a payment term, do the following instructions:
Go to Setup and select Settings.
Click on Payment Terms in the Account Receivables group of settings.
Hover over the Actions column and click on Edit.
Modify the term’s information.
Click on Save.
Delete a Payment Term
To delete a payment term, do the following instructions:
Go to Setup and select Settings.
Click on Payment Terms in the Account Receivables group of settings.
Hover over the Actions column and click on Delete.
Click on Continue to confirm the action.
Assign a Payment Term to a Customer
Once you have created your payment terms, the next step is to assign them to your customers. To assign a payment term to a customer, do the following instructions:
Go to Setup and select Customers.
Search the customer you are setting up and click on Edit from the Actions column.
Select a term from the dropdown list in the Term field.
Click on Save.
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Once you assign a payment term to a customer, if enabled, they will be able to schedule payments according to this configuration. To learn more, read Scheduled Payments Setup. |
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