Payment Terms Setup

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Last updated: Nov 29, 2024 by Andres Toledo
4 min read

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

User Roles: Admin.

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.

  4. 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.

  5. 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.

  6. Click on Save.

The payment terms are used to calculate the invoice due day in commission reports.

Add payment terms from the Account Receivables page.

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).

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

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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Edit or delete payment terms from the actions column in the Payment Term modal.

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.

 

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