Payment Term dialog box: options and information

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

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

  2. 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.


There are also payment terms that do not refer to a specific invoice date, but instead they refer to the invoice period. For example, you can create a payment term named Monthly 10, meaning that any invoice from a specific month, regardless of the date, is due by the tenth calendar day of the following month.

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.

Option

Description

Current Month

After you select this option, you can type a number in the and days box to indicate the day that the invoice is due in the following month. For example, if you type 10 in the and days box, any invoice from November would be due on December 10.

Current Quarter

After you select this option, you can type a number in the and days box to indicate the day that the invoice is due in the following month after the current quarter. For example, if you type 10 in the and days box, any invoice from July, August, and September would be due on October 10.

Current Half Year

After you select this option, you can type a number in the and days box to indicate the day that the invoice is due in the following month after the current half year. For example, if you type 10 in the and days box, any invoice from the second half of a year would be due on January 10 in the next year.

Current Year

After you select this option, you can type a number in the and days box to indicate the day that the invoice is due in the following month after the current half year. For example, if you type 10 in the and days box, any invoice from a year would be due on January 10 in the next year.

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.

Related topics

About support lists

Give a cash discount on an invoice

Take a cash discount on a vendor bill

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