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Payment terms

Payment terms are primarily used to indicate the due date of an invoice received from a vendor. This allows you to distinguish that the electric bill is due on the 10th of each month, the gas bill is due on the 15th of each month, and a regular maintenance company’s payments are always due 30 days after the invoice date.

Payment terms are typically applied to a vendor, and any invoice with that vendor “inherits” the same payment terms. However, payment terms can always be added to an invoice with no vendor or changed if a specific invoice does not have the same payment terms usually used with that vendor.

Create Payment Terms
Add Payment Terms to Vendor
Add Payment Terms to Invoice
Payment Term Settings

Create Payment Terms

The entire list of payment terms can be managed at Financials Main > Accounts Payable > Payment Terms. New payment terms can be created here, or next to the Payment Terms field on the Edit Vendor or Edit Invoice pages.

To create payment terms:

  1. Go to Financials Main > Accounts Payable > Payment Terms
  2. Create
  3. Choose Standard if the payment is due after a certain number of days past the invoice date. Choose Date Driven if the payment is due on a specific day each month. See here for more details about the payment term settings.
  4. Fill out the details to show when a payment is due and if a percentage discount has been negotiated
  5. Save

Add Payment Terms to Vendor

To apply payment terms to a vendor:

  1. Go to Financials Main > Accounts Payable > Vendors
  2. Search for a vendor
  3. Settings
  4. Edit
  5. Select a set of payment terms
  6. Save

Add Payment Terms to Invoice

To edit the payment terms on an invoice:

  1. Go to Financials Main > Accounts Payable > Vendor Invoices
  2. Create or Edit an invoice
  3. Select a set of payment terms and confirm the due date for that invoice
  4. Save

Payment Term Settings

Standard payment terms are used when the payment is due after a certain number of days past the invoice date.

  • If ABC Maintenance required payment by 30 days past the invoice date, the Net Due In X Days should be set to 30.
  • If they give a 5% discount when the payment is made in 10 days, set the Discount % to 5 and Discount if Paid within X Days to 10.

Date Driven payment terms are used when the payment is due on a specific day each month.

  • If the DEF Electric bill is always due on the 10th of the month, the Net Due Before Day of the Month should be 10.
  • If the due date is normally the 10th, but any invoice dated after the 7th will not be due until the next month, set Due Next Month if Issued within X days of the Due Date to 4.
  • If they give a 5% discount when the payment is made by the 1st of the month, set the Discount % to 5 and Discount if Paid within X Days to 1.

Discounts are used for record-keeping only and do not automatically deduct from the amount owed. Any discount should be entered by hand.