Payment terms

A payment term says when a document falls due: thirty days after the invoice, at the end of the month, or on a set day. You give each customer and vendor a term, and their invoices and bills take their due date from it, so the aging reports show what is late.

Create a payment term

1. Go to Finance ‣ Setup ‣ Payment terms and click New payment term.
2. Fill in Code and Name, for example NET30 and Net 30 days.
3. Pick a Subsidiary to keep the term to one subsidiary, or leave it empty for all.
4. Under Due terms, pick the Due method and enter the Due days.
5. Under Applies to, switch on Customers, Vendors, or both.
6. Click Save.

Due method	Due date
Net days	The document date plus Due days.
End of month	The last day of the document’s month, plus Due days.
End of following month	The last day of the next month, plus Due days.
Day of month	The next time that day of the month comes round, Due days being the day, from 1 to 31.

Example

A supplier invoices on 12 March. On Net days with 30 Due days, the bill is due on 11 April. On End of month with 15 Due days, it is due on 15 April. On Day of month with 25, it is due on 25 March.

Set up the cash term

A cash term means the customer pays at the time of sale. The point of sale asks for payment before it completes a sale on this term.

1. Click New payment term and fill in Code and Name, for example CASH and Cash.
2. Under Applies to, switch on Customers and Cash payment.
3. Click Save.

Note

A subsidiary has one cash term for customers at most: either one term for every subsidiary, or one term per subsidiary, never both.

Messages you may meet

Message	What to do
A payment term with that code already exists.	Pick another Code.
The term’s due method, days and scope do not describe a usable payment term.	Switch on Customers or Vendors, and give a Day of month term a day from 1 to 31.
Cash payment-term configuration is ambiguous for this subsidiary.	Keep one customer cash term in scope; switch Cash payment off on the other.
Customers still use this payment term; move them to another term before archiving it.	Change those customers’ term first.
Vendors still use this payment term; move them to another term before archiving it.	Change those vendors’ term first.