In the Payment Term dialog box, you can add or edit the payment terms, descriptions, payment due, and any cash discounts that your company offers to a customer, that a vendor offers to your company, or that relate to sales tax payments to tax agencies.
Open the dialog box

On the Company menu, point to Manage Support Lists, and then click Payment Terms List.

In the Manage Payment Term dialog box, click Add or Edit.
Dialog box options
The dialog box contains the following options.
Option 
Description 

Payment term 
(Required.) Type the payment term name, for example, COD, Net 30, or 1%10 Net 30. The term 1%10 Net 30 means that the invoice is due in 30 days, but if it is paid within 10 days, a cash discount of 1% can be taken. 

Description 
Type a description of the payment terms. For example, the name 1%10 Net 30 could be described as Discount 1% if paid within 10 days. 

Due and days 
You can use these two boxes either together or separately, depending on the payment term that you create. If the payment term indicates the number of days after an invoice date that a payment is due, type that number in the and days box and leave the Due box empty. For example, if the term is Net 30, type 30 in the and days box. Note: If the payment term is 1% 10 Net 30, you would also enter information in the Discount box.
Note: This type of payment term is commonly selected for payments due to tax agencies because sales tax payments are usually due at a required time after the month, quarter, or year ends. Click the arrow next to Due to select one of the following.


Discount 
Type a number to indicate the percentage discount that you are offering to a customer or a vendor is offering you. Common discounts are 1% and 2%. Microsoft Office Accounting 2008 adds the % symbol. 

if paid within days 
Type the number of days in which an invoice or bill has to be paid to take advantage of the discount. 