Payment Terms

In the business world, managing payment terms and due dates for invoices is crucial for maintaining a healthy cash flow. This guide will walk you through the process of setting up and managing payment terms to automatically calculate the due date of your invoices based on specific criteria.

To begin, navigate to Setup > Preferences > Payment Terms. Click on the Setup Payment Terms link at the top of the page. Here, you can either select an existing payment term from the list or create a new one by clicking on the + New Payment Terms button. Set the Payment Due dropdown to either Days After EOM (End of Month) or Days After Invoice Date, and enter the Balance Due Days.

It is recommended for most businesses to establish a global default payment term for cash customers and then define specific payment terms for account customers.

To set up a global default payment term for your business, follow these steps:

1. Go to Setup > Preferences and select the Sales option.

2. Choose your default payment terms from the dropdown next to the Payment Terms field.

3. Click on Save Changes to apply the settings.

If you need to set up specific payment terms for individual customers, here's how you can do it:

1. Access Setup > Customers from the top menu.

2. Search for the customer you want to edit and click on their profile.

3. Under the Account / Payment Terms section, input the customer's payment terms.

4. Save the changes to update the customer's payment terms.

It's important to note that if you assign a payment term to a particular customer, it will take precedence over any default payment terms set in Setup > Preferences.

By following these steps, you can streamline your invoicing process and ensure that payment due dates are calculated accurately based on your defined payment terms.