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Payment Terms are configured in Setup / Finance / Dunning Process / Payment Terms |
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Payment terms allow you to define how invoice due dates are set. Payment terms are required in order to setup accounts receivable terms (AR terms). AR terms are selected when creating accounts in order to specify the how invoice due dates are set and what dunning rules that apply to the account.
Prerequisites
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 | Allows you to delete a payment term. Payment terms which are in use (configured on AR Terms) cannot be deleted |
 | Adds a new payment term |
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The information in this panel reflects the currently selected payment term. From here you can change payment term details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).
Payment Term Fields and Options:
Name: a unique and descriptive label name to describe the payment term. E.g. 'Net 20', 'On Due Date', 'Due on 1st', etc.
Payment Term Type: the type specifies how the payment due date will be determined. The options are listed below
Day of Month: specifies a particular day that payment is due. The 'Day of Month' field will appear when this option is selected allowing you to enter the due day (a value from 1 to 28 is permitted in this field). If you set the day to '10' and the customer's invoice is posted on Oct 1st then payment for the customer will be due on Oct 10th. If the day is 10 and the customer's invoice is generated on Oct 11th, then payment will be due on Nov 10th
Net: allows you to set the number of days after the invoice render date/account bill date that the invoice is due (the starting date used is determined by the bill group setting the bill group setting 'Invoice Due Date Based On'). When 'Net' is selected an additional field called 'Term' will appear allowing you to enter a value from 1 to 365. If you set the Term to 20 then payment will be due 20 days after the invoice render date/account bill day (which starting date used depends on the invoice due date configuration in the account's bill group)
On Due Date: indicates that payment is due on the invoice due date. The invoice due date is determined by bill group settingsby bill group settings