Payment and Credit Terms

Overview

Payment and Credit Terms are the conditions that indicate when a payment is due. These are typically applied to invoices. Payment Terms are set on your Vendors and Purchase Orders and reflect the agreements between you and your vendors related to payment time-frames and discounts. Similarly, Credit Terms are set on your Wholesale Customers and reflect the agreement between you and the buyer regarding when a payment should be made.

Manage Payment and Credit Terms

You can create new Payment/Credit Terms or modify and delete the existing ones in Settings > Client Settings > Payment/Credit Terms.

To create new Terms:

1. 1. Click on the Plus icon in the top right corner of the Payment and Credit Terms panel.
   2. In the Add New Payment and Credit Terms dialog box, complete the required fields:
      1. Terms – A name for the term that will appear in the relevant drop-downs.
      2. Description – A brief description of the term.
      3. Days to Pay – The agreed-upon period of time in which a payment needs to be made.
      4. Days to Pay (Discount) – The period of time in which a payment needs to be made in order to be eligible for a Discount (for advance payment).
      5. Discount – The Discount amount that will apply if the payment is made within the agreed-upon time bracket.
   3. Click Save. The Term will now be available to set as Credit or Payment term on Customers or Vendors, respectively.

To edit existing terms, go to the Payment and Credit Terms panel, navigate to the terms you want to change, and click the respective pencil icon. This will open a dialogue box where you can edit the Term details. To remove Terms that are no longer in use, click the item’s bin icon.

Vendors Payment Terms

You can set the Payment Terms at the Vendor level. When creating a new PO, Payment Terms will be pulled from the related vendor, but you can still edit them manually in the PO creation wizard.

1. 1. 1. Go to Purchasing > Vendors > Manage Vendors.
      2. Open the vendor you want to adjust the Payment Terms for.
      3. In the upper right, click Edit.
      4. Go to the Payment panel.
      5. In the Payment Terms field, select the appropriate term.
      6. Alternatively, click the plus icon to create new a Payment Term. Once created, the newly configured Term line will appear under the Payments/Credit Terms configuration.
      7. Save the changes.

Add Payment Terms to POs

You can specify the Payment Terms when you create or edit a Purchase Order. If Payment Terms are set for the selected vendor, the Payment Terms field will be automatically populated.

If you want to display the Payment Terms on the Purchase Order PDF form, enable the Print Payment Terms on PO PDF Client Setting.

1. 1. 1. Go to Purchasing > Create New Purchase Order.
      2. In the General step of the PO creation wizard, select the existing Payment Terms. Alternatively, click the plus icon to create new Payment Terms. Once created, the newly configured Payment Terms line will appear under the Payments/Credit Terms configuration.
         
      3. To specify or change the Payment Terms at the PO level, go to the PO’s home page.
      4. Select the appropriate Payment Terms on the Billing & Payments panel.
      5. Save the changes.

Wholesale Customers Credit Terms

You can use the pre-configured Credit Terms for your wholesale customers to flag the orders that exceed the Credit Terms.

If a customer has not completely paid off the Credit Limit before the Credit Term ends, you can review the list of unpaid orders for that customer by clicking the respective icon in the customer’s Orders toolbar. Thus, you can prevent Orders from shipping.

Enabling the Allow to Create over Credit Limit WholeSale Orders Client Setting will let you create orders for customers with overdue payments. To restrict this, disable this Client Setting.

Follow the steps below to add specific Credit Terms for an individual customer.

1. Go to Customers > Manage Customers.
2. Open the requested customer. Alternatively, create a new customer.
3. In the upper right, click Edit.
4. On the customer’s home page, refer to the Wholesale Options panel. This panel will not appear unless your customer is wholesale and the relevant Wholesale Customer option is selected. For details, refer to Wholesale Customers.
5. In the Credit Term field, select the pre-configured Payment Terms/Credit Terms that reflect the period of time the credit is extended.
6. In the Credit Limit field, enter the amount of credit extended.
7. Click the Billing Cycle Start Date field, and select the date when the Credit Terms will start.
8. In the upper right, click Save.

Relevant Client Settings

The following client settings allow you to customize this workflow:

• Allow to create over Credit Limit WholeSale orders – when enabled, you will be able to create new orders for a Wholesale customer, even if they have exceeded their Credit limit. It also allows the creation of orders that exceed the overall customer credit limit.
• Print Payment Terms on PO PDF – when enabled, the Payment Terms will be included in the PDF, generated via the Print to PDF action from the Purchase Order Details page.