The Goal: Configure your invoice payment terms so the right due dates and past-due thresholds are applied automatically when you create invoices.
Before You Begin:
- You need billing/finance configuration permissions to edit invoice terms.
- By default, payment terms are set to Due on Receipt. You can modify and add additional payment terms to meet your business needs. You may configure your terms here initially, but you will also have the opportunity to create terms “on the fly” when creating invoices.
Step-by-Step Instructions
Go to Finance, Billing section, click Settings and select Invoice Terms. A list of invoice terms currently configured in your system will be displayed.
Click the Add button.
- On the Add/Edit Invoice Terms screen, configure the following:
- Name – Enter a name for this invoice term. This name will be displayed in drop-down lists in the software.
- Display Name – Enter the display name. This will be displayed on invoices.
- Default Due Days – Enter the default due days for this invoice term configuration. This is the number of days the system will use to identify past-due invoices.
- Click Done to finalize your changes.
Common Pitfalls
- Misusing Default Due Days: The Default Due Days value drives how the system flags past-due invoices. Setting it to 0 (or leaving it blank) effectively makes the term “Due on Receipt” — double-check this value so invoices aren’t marked overdue sooner or later than you intend.