Define Payment Terms
This section describes how to define payment terms. Payment terms determine how due dates and payment discounts are managed. You can assign payment terms to customers and vendors so that the payment term is automatically assigned to documents you create for those customers or vendors. If needed, you can still change the payment term on the document, for example if you want a particular customer to pay you within 7 days rather than 14 days. This does not affect the default payment term. To define a payment term, please proceed as follows:
- Use the quick search (ALT+Q) to find the page Payment Terms.
- The page Payment Terms is displayed.
- To set up a new payment term, click on New in the menu bar. A new line is added to the table.
- Complete the following information:
| Column | Description |
|---|---|
| Code | Enter a code for the payment term. |
| Due Date Calculation | Specify a formula that will determine how due dates are calculated, e. g. 10D if the invoice should be sent to the customer after 10 days. |
| Discount Date Calculation | Specify a formula that will determine how discounts are handled. For example, enter 5D if the customer should be granted a discount if they pay within the first five days. |
| Discount % | Enter a discount percentage for the payment term. If you want to disable the discount for a specific document line, you can do so by selecting the No discount checkbox on the document. This customized setting takes precedence and overrides the settings set here. |
| Calc. Pmt. Disc. on Cr. Memos | Activate this field if the discount should also apply to credit memos with this payment term. |
| Immediate Annuity Credit Disc./Refund | Activate this checkbox if the due date of credit memos and refunds should be set to the document date. |
| Description | Enter a description for the payment term. |
| Payment Text for Direct Debit | Enter a text that will be printed on all documents that contain a payment term marked as direct debit. |
| No Payment Discount on Items | Activate this checkbox if you do not wish to grant a discount on items that get added to documents with the payment term specified here. If you want to disable the discount for a specific item, you can do so by activating the No discount toggle switch on the item page for that specific item. This customized setting takes precedence and overrides the settings set here. You can find more information on this under Creating Items. |
| No Payment Discount on Resources | Activate this checkbox if you do not wish to grant a discount on resources that get added to documents with the payment term specified here. If you want to disable the discount for a specific resource, you can do so by activating the No discount toggle switch on the resource page for that specific resource. This customized setting takes precedence and overrides the settings set here. |
- You have successfully set up a new payment term.