Payment Terms

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Setup Payment Terms


Payment terms spell out the terms of the sale to the customer and the terms of the purchase with your vendor. They can also be used to reward customers who pay on time or early and they allow you to take advantage of the discounts that your vendors give you if you make your check within the discount period.


First, go to the main menu and click on Setup/Payment/Payment Terms


1- Enter the Terms Description

2- Give a name to each of the payment terms here. We recommend that to use a descriptive name. A descriptive name is something along the lines of 2% 10 Net 30, or anything else that thoroughly and succinctly describes the payment terms. In this example, 2% 10 Net 30 means that if the bill is paid within ten days, it will be discounted by two percent; the entire bill (net) is due within thirty days. If they do not pay the entire bill by the discount date, then they must pay the entire invoice (i.e. no discounts) within thirty days.

3- Enter Net Days -This specifies how many days the customer has to pay the bill in total.

4- Enter Discounts- Discount % - this tells what discount you are willing to give the customer if he or she pays the bill within the number of days specified.

5- Enter Discount Days - this is the number of days the customer has to pay the bill before the discount expires.

6- To delete a terms, select it from the list and press delete. You should not delete any payment terms that you have already assigned to customers/Vendors


Note: The Terms Id is a unique number the system automatically assigns for you.

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