Set or change default payment termsLast updated on 03/22/2022
When you set a term as default for a specific customer, every invoice created for this customer automatically carries that term. Similarly, when a term is set as default for a specific vendor, every invoice created for this vendor automatically carries that term.
You can override the default terms for specific customers or vendors if you want to extend them special terms.
Use Case
In recent months, your company started servicing a new zip code. One of your customers is the landlord for an apartment complex where they’re going through significant repairs and services. There have been recurring jobs at this customer’s location, and as a measure of good faith and to encourage returning business, you want to extend a special term of Net 10 (payment due within 10 days of the invoice date), rather than your standard Due Upon Receipt. You can change the default payment term of this one customer to Net 10 without affecting your global defaults. Invoices created for this customer after this change automatically have the Net 10 payment term.
Set or change an individual customer default term
Go to the navigation bar and click the search icon.
From the What do you want to search for? dropdown, select Customer. Then, click the green search icon.
Select the customer you want to edit the default payment term.
Once on the customer record, click the pencil icon. Note: If you see an exclamation next to the payment term, you need to validate this term. See Validate a payment term for more details.
From the Payment Term dropdown, select the appropriate payment term for your customer.
When you’re done, click Save.
Validate a payment term
Payment terms can be auto-assigned to customers or vendors based on the default terms created in Settings (for more on creating payment terms, see Create, edit, and deactivate payment terms). Although this process is automatic, you still have the opportunity to review and validate any of these terms which ensures that all terms are accurately assigned to your customers and vendors.
Note: Invoices for customers will still be created with a default term, even if the term is not yet validated.
A payment term needs to be validated when you see an exclamation point icon next to the payment term on the customer or vendor screen. Click the red exclamation point icon to validate the payment term.
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.