Payment terms define the agreed-upon conditions between you and your clients regarding when an invoice should be paid. Setting clear payment terms helps manage cash flow and ensures everyone is on the same page.
Here’s how to create and set a payment term in the system:
Step 1: Navigate to Settings and click on Payment Terms
You’ll be directed to the Payment Terms page.
Step 2: Click the + New Payment Term button
Step 3: Fill out the Payment Term Information
- Name: Enter a descriptive name for the payment term (e.g., "Net 30" or "Due on Receipt").
- Term Days: Specify the number of days from the invoice date when payment is due (e.g., 30 days, 60 days).
Optional: If you’d like this payment term to automatically apply when creating new client profiles, check the box labeled Use as Default. You can always manually change the payment term for specific clients later.
Step 4: Save the Payment Term
Once you’ve filled in the details, click Save.
A confirmation prompt will appear, letting you know the payment term has been successfully created.
Quick Tip:
Click the check icon to set this as the default payment term in the Payment Term field across the system. This ensures the term will automatically apply to new clients!