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Overview

Excerpt

This section explores how to add and edit payment terms. Payment terms are used while invoicing customers and even applying discounts based on them.

 

How to Add Payment Terms

Please follow the next steps to add or edit a payment term:

Ui steps
sizesmall
Ui step

Go to Setup>>Settings.

Ui step

 Under Account Receivables options, click on Payment Terms

Ui step The system will open the Payment Terms window which contains a summary of the payment terms the Company has. Notice that by going to the Actions column it is possible to Edit or Delete a payment term. To add a payment term, click

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Excerpt

In this article, you will learn how to add, edit, and manage payment terms and assign them to your customers. 

Tip

User Roles: Admin.

Table of Contents

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The Add/Edit Payment Terms window will open.

Payment term:

Name: The name of the term

Add Payment Terms

To add a payment term, do the following instructions:

  1. Go to Setup and select Settings.

  2. Click on Payment Terms in the Account Receivables group of settings.

  3. Click on Add a new payment Term.

Ui step
  1. Fill in the information on the payment term.

    • Name. The term's name (Net 30, Net 60, Due on Receipt, etc.).

    • Prepaid

: mark
    • . Mark this option if the customer

is supposed
    • has to pay in advance.

    • Credit Period

: length of the credit period
    • . Credit period length in days.

    • End of the month

: by checking this option, the
    • . Start payment term

starts counting from
    • on the last day of the month of the invoice.

  1. 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.

  2. Click on Save.

The payment terms are used to

calculated

calculate the invoice due day in

the commissions report as in the next example on which

commission reports.

Image Added

Example: How does the system calculate the period?

In this example, the credit period is 30 days, and the End of the month

option has been checked

setting is enabled:

Invoice Date: 08/

10

14/2020

(MM/DD/YYYY)

Commission Report Invoice Due Date column will be: 10/

09/2020 (MM/DD/YYYY) since the

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).

Discount

Set up this section if you want to, set a discount which will apply if the invoice is paid before the number of days set up.

E.g. You enter 30 in the Days field and enter a Discount of 5%, it means that if the customer pays the invoice before 30 days, a 5% discount will be applied (it wilbe visible on the Receive Payment screen).

 Click on Save to finish.

Panel
titleRelated Articles

Recommended Configuration for Standard Payment Terms

Standard Term Name

Description

Example Configuration

Example

Net 1

1 day credit period

Credit Period: 1, EOM: No

Order Date: Sep 25 Payment Due: Sep 26

Net 1 EOM

1 day after month end

Credit Period: 1, EOM: Yes

Order Date: Sep 25 Payment Due: Oct 1

Net 7

7 days credit period

Credit Period: 7, EOM: No

Order Date: Sep 25 Payment Due: Oct 2

Net 7 EOM

7 days after month end

Credit Period: 7, EOM: Yes

Order Date: Sep 25 Payment Due: Oct 7

Net 15

15 days credit period

Credit Period: 15, EOM: No

Order Date: Sep 25 Payment Due: Oct 10

Net 15 EOM

15 days after month end

Credit Period: 15, EOM: Yes

Order Date: Sep 25 Payment Due: Oct 15

Net 30

30 days credit period

Credit Period: 30, EOM: No

Order Date: Sep 25 Payment Due: Oct 25

Net 30 EOM

30 days after month end

Credit Period: 30, EOM: Yes

Order Date: Sep 25 Payment Due: Oct 30

Net 45

45 days credit period

Credit Period: 45, EOM: No

Order Date: Sep 25 Payment Due: Nov 9

Net 45 EOM

45 days after month end

Credit Period: 45, EOM: Yes

Order Date: Sep 25 Payment Due: Nov 14

Info

Scheduled Payments Configuration

If you already have configured payment terms, the system will try to associate them with our standardized terms based on the name. If your custom payment term does not match any standard payment term described above, the customers assigned to it will not be able to schedule payments.

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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:

  1. Go to Setup and select Settings.

  2. Click on Payment Terms in the Account Receivables group of settings.

  3. Hover over the Actions column and click on Edit.

  4. Modify the term’s information.

  5. Click on Save.

Delete a Payment Term

To delete a payment term, do the following instructions:

  1. Go to Setup and select Settings.

  2. Click on Payment Terms in the Account Receivables group of settings.

  3. Hover over the Actions column and click on Delete.

  4. Click on Continue to confirm the action.

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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:

  1. Go to Setup and select Customers.

  2. Search the customer you are setting up and click on Edit from the Actions column.

  3. Select a term from the dropdown list in the Term field.

  4. Click on Save.

Info

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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