Payment Terms

Payment terms define the conditions under which invoices are expected to be paid. They specify the number of days after the invoice date by which payment is due. Configuring payment terms helps standardize your invoicing process and set clear expectations with customers and suppliers.

Accessing Payment Terms

Navigate to Dashboard > Accounting > Settings > Payment Terms.

The Payment Terms List

The page displays all configured payment terms with the following columns:

Column	Description
Name	The display name of the payment term (e.g., "Net 30", "Due on Receipt").
Code	A short code for quick reference (e.g., NET30, DOR, NET60).
Due Days	The number of days after the invoice date by which payment is expected.
Description	An optional description explaining the terms in more detail.
Default	Whether this is the default payment term applied to new invoices.
System	Whether this is a system-generated term (from seeding). System terms may have restrictions on editing.
Status	Active or Inactive.
Actions	Edit and Deactivate buttons.

Creating a Payment Term

Open the Add Dialog

Click the Add Payment Term button. A dialog window opens.

Fill In Details

Field	Required	Description
Name	Yes	A descriptive name (e.g., "Net 30", "Net 15", "Due on Receipt", "2/10 Net 30").
Code	Yes	A short unique code (e.g., NET30, NET15, DOR).
Due Days	Yes	The number of days after the invoice date by which payment is due. Set to 0 for "Due on Receipt".
Description	No	Additional details about the payment term (e.g., "Payment is due within 30 days of invoice date").
Is Default	No	Toggle to make this the default payment term. Only one term can be the default at a time.

Save

Click Save to create the payment term.

Common Payment Terms

Name	Code	Due Days	Description
Due on Receipt	DOR	0	Payment is expected immediately upon receiving the invoice.
Net 7	NET7	7	Payment due within 7 days.
Net 15	NET15	15	Payment due within 15 days.
Net 30	NET30	30	Payment due within 30 days. The most common B2B term.
Net 45	NET45	45	Payment due within 45 days.
Net 60	NET60	60	Payment due within 60 days. Common for larger accounts.
Net 90	NET90	90	Payment due within 90 days. Used for long-term supplier relationships.

Editing a Payment Term

Click the edit button on any payment term row. The dialog opens pre-filled with current values. Modify the fields and click Save.

Deactivating a Payment Term

Click the deactivate button on a payment term. Deactivated terms:

• Are no longer selectable on new invoices.
• Remain on existing invoices where they were applied.

Seeding Default Payment Terms

Click the Seed Default Terms button to automatically create a standard set of payment terms. This typically includes:

• Due on Receipt (0 days)
• Net 15 (15 days)
• Net 30 (30 days)
• Net 60 (60 days)

Info: Seeding is safe to run at any time. It will add default terms without affecting existing ones. However, if terms with the same codes already exist, duplicates may be created.

How Payment Terms Affect Due Dates

When you assign a payment term to an invoice:

1. The system takes the invoice date (issue date).
2. It adds the due days from the payment term.
3. The result becomes the invoice's due date.

For example:

• Invoice date: March 1, 2026
• Payment term: Net 30 (30 days)
• Calculated due date: March 31, 2026

This calculated due date is used for:

• Displaying the due date on printed invoices
• Aging reports (how many days overdue)
• Accounts receivable/payable tracking

Tips for Managing Payment Terms

• Set "Net 30" as default if most of your business operates on 30-day terms. This is the most universally accepted B2B payment term.
• Use shorter terms for new customers until they establish a payment history (e.g., start with Net 15, then extend to Net 30).
• Create specific terms for key accounts if certain customers or suppliers have negotiated unique payment periods.
• Review aging reports to see which payment terms result in the best collection rates and adjust accordingly.
• Communicate terms clearly on your invoices. The payment term name and due date should be prominently displayed.