Payment Terms

• The Payment Terms module allows payment terms to be created and modified.
• To create a new payment term, click the New button. Each existing payment term is displayed in the search area on the left.
• Payment terms determine the timeframe in which you will pay your vendors and get paid by your customers.

Create a payment term

To create a new payment term in the Payment Terms module, click the ADD NEW button in the action bar of the main page. There are very few fields you have to fill out. Enter a Name for the new payment term, which is the only required field. After that, choose the type of payment term it will be. There are two options:

• Net Term - Payment must be made within a set number of days after a bill is received.
• Date Driven - Payment must be made by a specific day of the month in which a bill is received.

Net Term is the simplest option. All you need to do is enter the number of Net Days after a bill is received for it to be paid.

Date Driven requires two pieces of information rather than one. Enter the date on each calendar month that a payment will be due by in the Date Due field. If the order is issued a certain number of days before the due date, it will be pushed to the following month. Enter that number of days in the Days field to the right.

For both options, you can apply a discount if payment is received within a specific number of days. First, click the Apply discount if paid early checkbox. Then enter a number between 1 and 99 in the Discount field. Please note that you can’t use fractions or decimal points. For example, if you enter 1.9 and click SAVE AND CLOSE, it will be saved as 1 when you open that payment term again. It will always round down to the nearest whole number, never up.

Enter the number of Days in which a payment must be received for the discount to be applied. This number must be less than the Net Days number if the Net Term option was selected. 365 is the highest number it can be if it is for the Date Driven option, but shorter is better, of course.

Once you save the payment term, it will appear in the list of payment terms on the left and on the main page of the module. It will also be usable in the Details tab of the Purchase Orders module and Sales Orders module, as well as the General tab of the Customers module and Vendors module.