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:

- Go to
**Financials Main**>**Accounts Payable**>**Payment Terms** **Create**- 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. - Fill out the details to show when a payment is due and if a percentage discount has been negotiated
**Save**

## Add Payment Terms to Vendor

To apply payment terms to a vendor:

- Go to
**Financials Main**>**Accounts Payable**>**Vendors** - Search for a vendor
**Settings****Edit**- Select a set of payment terms
**Save**

## Add Payment Terms to Invoice

To edit the payment terms on an invoice:

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