Payment Terms establish when you expect your Customers to settle their accounts or when Suppliers expect you to pay.

Normal Payment Terms

Payment terms only apply to Customers who buys on credit.

It is important to set the customer terms before processing commences, should your customer not pay on time, you can start charging interests on the overdue amounts. Overdue reports are available to see who owes you money.

Payment terms can be monthly or day-based.


  • Current – The customer must pay in the same month in which you invoice them. Amounts that are unpaid and are more than one month old are overdue.
  • 30 days – If you offer 30- day terms, the customer must pay in the month after you invoice them.  Amounts that are unpaid after two or more months are overdue, and so on.
  • 60 days
  • 90 days
  • 120 days


Usually from the date of the invoice. For example, you can give a customer terms whereby he should pay you within seven days from the date of the invoice. If the customer does not pay you within this period, they are overdue.

To use day-based terms, you must create your own terms codes.

You can also create a terms code that is a mixture of day based and period based, although this is not common.

To do this, you specify that payment is due a specified number of days after the end of the period. If you use this kind of terms code, the system calculates the first due date based on the number of days in the terms code, and then switches to monthly terms from then on.

Open Item Processing must be used with day-based terms.


  • Everyone must be logged out of the company, you require Sole Access Mode to apply the changes
  • Select Edit… Terms… Normal Payment Terms.  You can create up to 99 terms.
  • Scroll to an unused line (one with zero days) and enter its fields
Enter the maximum number of days within which the Customers must pay you or you must pay Suppliers.  Once the time-period is exceeded, the account is overdue.
If your terms exceed 30 days, consider using monthly terms instead.
· From Date of Invoice: Expect a payment x days after the date of Invoice.
· From Last Day of Period: Expect payment x days after the last day of the current period. Mixture of day-based and monthly terms.
  • Changes to this field can be made at any time.
  • To delete a line, select the line and change the days to zero. You cannot change a terms code that is in use, and the system asks if it should check. Once the check is complete, the system allows you to set the days to zero.


  • Select Edit… Customer… Accounts… Terms
  • Set the terms for the Customer
  • Save the changes once complete
  • Select Edit… Supplier… Accounts… Processing
  • Save the changes once complete
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