Configure Payment Terms

Requirements

This tutorial requires the installation of the following applications/modules:

• Accounting & Finance

Payment terms are the determination of the payment value and due date for each purchase and sale transaction to ensure that payments are made on time and correctly. Using Viindoo accounting software, you will only need to declare the payment terms once, and apply them to sale orders and invoices, then the payment schedule will be automatically computed.

The automatic calculation of due date and payment value is very useful in tracking the payment schedule of installment plans, paying in installments if your company applies these two forms of payment.

Configure Payment Terms

Payment Terms should be configured only by the person with the highest level of access in the Accounting app. Navigate to Accounting ‣ Configuration ‣ Payment Terms:

Press on +New and fill in the following information:

• Payment Terms: Choose a name for your payment terms.

• Description on the Invoice: Payment terms explanation for the customer will be displayed on the Description of invoices or vendor bills.

• Display terms on the invoice: If checked, the payment deadlines and respective due amounts will be detailed on the invoice.

• Terms: To add a rule for your payment terms, select Add a line.

  • Due type: Select here the kind of valuation related to this payment terms line.

    • Percent: Percentage of invoice value needs to be paid.

    • Fixed Amount: The fixed amount of money needs to be paid if this payment term is chosen.

    • Balance: The leftover value of the invoice.

  • Value: The value corresponds to each type of outstanding balance. For example, for the percentage type, enter a value from 0% to 100%.

  • Month: Specify how many months after the invoice date the payment is due.

  • Day: Specify how many days after the invoice date the payment is due.

  • End of Month: Check if the debt is to be paid at the end of the month.

  • Days after End of Month: The number of days to add after the debt is moved to the end of the month.

  • Discount %: Enter the percentage discount if paid early.

  • Discount Days: Enter the number of days before the due date for early payment.

Note

• Terms are calculated in the order they are established.

• The rules of Balance should always be set up as the very last line.

An example of payment terms configuration:

Configuration for Fixed Value type:

For an invoice of 10,000,000 on January 4, 2024. Terms: Pay a fixed value of 2,000,000 at the end of the month, 2 days after the end of the month. The remaining amount is due 30 days later.

Configuration for Percentage type:

For an invoice of 10,000,000 on January 4, 2024. Terms: Pay within 15 days of the invoice date. The remaining amount is due 30 days later.

Configuration for Balance type:

For an invoice of 10,000,000 on January 4, 2024. Terms: Pay within 15 days of the invoice date.

Payment terms usage

You can apply payment terms in different places such as:

• Quotation:

Note

• When payment terms are applied on a sales quotation, invoices created from this quotation will have these payment terms applied by default.

• Customer Invoice/ Vendor Bill:

You can see the value and due date of the invoice by going to tab Journal Items:

• Contacts:

You can set up Payment Terms for each customer or vendor by default when navigating to the Contacts app, choose the contact in question then go to tab Sales & Purchase:

See also

Related article

• Process a cash discount

Optional module

• Payment terms extended

• Assets management

• Purchase advance payment