Payment term is the conditions under which a seller will complete a sale. Or in a simpler form, its explained as when will your buyers have to return you your money.
Where can you find payment term?
- Go to Payment Term setting under Cashflow menu
- Click Add New Button
- Name the payment term you preferred
- You can also set it as a default. Which automatic apply to the invoices you issue.
Tenure - The default time frame to bill your customer (either in day, week, month)
Amount - set it as a percentage
Cash= Paid in cash
NET 30= Pay within 30 days
EOM= Pay end of the month
50.50= Pay 50% today, and another 50% another day (you can set the date).
70.30= Pay 70% today, and another 30% another day.
- 100% amount due in 30 days
- Tenure: 30 days
- Amount: 100%
- You collect deposit first, and the balance pay break into 2 payment
- Tenure 1: today, Amount: 50%
- Tenure 2: 1 month, Amount 30%
- Tenure 3: 2 month, Amount 20%
Note: the total of amount should be 100%
You are still allowed to change the date and amount when you issue the Sales Invoice.