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.

• Early Discount: Check this option if the payment term allows for early payment with a discount.

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

  • Due: Select here the kind of valuation related to this payment terms line. After selecting either the percentage or fixed option, you will enter the corresponding value in the left column.

    • 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.

  • After: Select the payment due date according to the contract. The software currently has four options. After selecting the appropriate due date, you can enter the additional number of days (if any) in the left box.

• Priview: Preview examples according to the established terms.

An example of payment terms configuration

Configuration for Fixed Value type

For an invoice of 10,000,000 on July 9, 2024. Terms: Pay a fixed value of 2,000,000 at the days after invoice date. The remaining amount is due 30 days later.

Configuration for Percentage type

For an invoice of 10,000,000 on July 9, 2024. Terms: 50% is payable upon invoicing. The remaining 50% is due 60 days after the invoice date.

Payment terms usage

• 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. The system will automatically separate debts according to the corresponding terms.

• 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