Introduction
Payment terms define when payments are due, helping businesses manage cash flow. Common terms like COD, NET30, and EOM provide different payment options for customers. This article will guide you on how to manage payment terms.
Our system provides several pre-configured options at Control Panel > Payment Term, including popular terms as follows:
How to Create a New Payment Term
To create a new payment term, follow these steps:
Navigate to Control Panel > Payment Terms > +New.
Enter the required details:
Name: Provide a name for the payment term.
Description: Add a description for internal reference.
Select the type of payment term and enter the value based on your needs.
The table below uses an invoice date of 10th September 2024, with two examples for each type showing how the due date is calculated based on the value set.
Type | Value | Due Date |
In Days - In number of days.
Note: Due in number of days, put 0 as same day. |
30 days
60 days |
10th October 2024
9th November 2024 |
Day of Month - A day of invoice month.
Note: Due on a specific day of the invoice date month. Valid: 1 - 31. |
20th
5th |
20th September 2024
5th October 2024 |
Day of Following Month - The day of following month.
Note: Due on a specific day of the following month. Valid: 1 - 31. |
15th
30th |
15th October 2024
30th October 2024 |
End of Month - End of a month.
Note: Due at the end of a month. 0 for invoice date month, 1 for the following month, and so forth. |
0
1 |
30th September 2024
31st October 2024 |
Days After Month - Due in number of days after the end of invoice month.
Note: 0 for end of invoice month, 5 for five days after the end of invoice month. |
15 days
60 days
|
15th October 2024
29th November 2024 |
How to Use the Payment Terms in Transactions
When creating a transaction, payment terms automatically calculate the due date based on the term you select.
Click the term to choose your preferred payment term, and the due date will be auto-filled.
To manually enter or adjust the due date, click the x to remove the selected term.
Click + Term to add multiple payment terms if required.
You can also quickly add a new payment term on-the-fly by clicking + Add Term.
Frequently Asked Questions (FAQ)
How can I set a default payment term?
You can set a default payment term by navigating to Control Panel > Company Setting > General. Select your preferred term as the default under the Default Payment Term & Payment Method section.
How can I set a default payment term for each contact?
Go to Contacts, click 'View' for the desired contact, and set the preferred default payment term.
What should I do if I need to deactivate or delete a payment term?
You can deactivate payment terms that were used before but are no longer needed, or delete unwanted terms. To do so, click the three dots next to the View button.
Can I edit the type or value of a payment term after saving it?
Once a new payment term is saved, the type and value cannot be edited. If changes are needed, you can delete the term and create a new one.
How is a single payment term displayed in a PDF transaction?
In the PDF transaction, if there is only one payment term, it will display the payment term name and its due date as shown below:
How are multiple payment terms shown in a PDF transaction?
If there are multiple payment terms, they will be listed in a table, and the field indicating 'Payment Term: Credit', as illustrated below:
