What this screen is for
A payment term is a name plus a rule, and the rule is what works out a due date: a number of days, a day of the month, a day of the following month, end of month, or days after month end. One term can be marked as the default, and that default is applied to new documents. The lower half of the page holds two shorter lists, Delivery Terms (for example DDP or FOB) and Delivery Days (for example 3-4 working days).
When to use it
Set these up before you start invoicing, and revisit them when you agree new credit arrangements. Changing or deactivating a term affects documents raised afterwards; it does not recalculate due dates on invoices already issued.
What you see on this screen
The Payment Terms table has five columns: Name (with the description underneath), Rule, Default, Active and Actions. The Rule column is written out from the type and value you saved, so you read back sentences such as Due in 30 days, Due immediately, Day 10 of invoice month, Day 5 of following month, End of invoice month, or 15 days after month end.
Adding or editing a term opens a panel with Name (required), Description, Type (required) and Value (required, hidden when the type is End of Month), plus tick boxes for Set as default and Active. The Type choices are In Days, Day of Month, Day of Following Month, End of Month and Days after Month.
Below, Delivery Terms and Delivery Days are simple named lists. Each row can be renamed in place, starred as the default, or deleted, and a box at the foot of each list adds a new entry.
Filters and actions
There is no search or filter here. Add creates a payment term; the star sets a default within each delivery list; Edit and Delete sit on every row. Deleting asks you to confirm and states that it cannot be undone.
Status values
A payment term is Active (Yes) or inactive (No). An inactive term stops being offered on new documents but stays on the ones that already use it.
Related
- Invoice Settings - where terms and notes are applied to documents
- Payment Reminders - chases invoices once the due date has passed