Payment Terms
Each corporate organization has unique techniques and tactics for making and collecting
payments. You can create alternative payment terms and use them when making customer
bills and vendor bills, depending on your company's regulations. The terms of payment
will specify the circumstances in which a payment is made. You can obtain the due dates
automatically by using payment conditions on sales orders, customer invoices, vendor
bills, and contracts. Installment payments might notably benefit from this feature.
The Payment Terms option is located in the Invoicing tab of the
Configuration menu of the Accounting module.
You will find a list of already configured payment conditions here, along with
information about their name and company, as seen in the screenshot below.
By selecting the New button, it is simple to configure new payment conditions.
You can enter the names of the Payment Terms and Company in the
corresponding fields. By including a brief statement in the area labeled "Description on
the Invoice," you may explain the payment terms to customers. By turning on the Display
Terms on Invoice feature, the invoices will include information about the due dates for
payments and the associated amounts. Using the Add a Line button under the Terms page,
you can specify the payment terms. In the Due Type field, choose the type of value that
corresponds to this payment terms line. It could be a Fixed Amount, Percent, or Balance.
To guarantee that the entire amount will be allocated, the computation type on the final
line should be "Balance". In the Value field, enter the corresponding value for the due
type. You can change to the end of the month after adding months or days to the End of
Month field, if necessary, after noting Months and Days to determine the payment due
date.
By turning on this feature, you can specify how many days to add after the month's
conclusion in the Days after the conclusion of the Month field. You can enter the early
payment discount offered for this line in the Discount area. Indicate the number of days
left before the early payment proposition expires in the Discount Days field.
After setting up the payment terms, you can use them to create records of vendors or
customers in the Sales & Purchase tab of the contact form. This will ensure that
whenever you choose a vendor or customer, the corresponding payment term will
automatically appear on the corresponding purchase order or sales order.