What are Default Payment Terms?

  • Updated
Default Payment Terms can be found under Billing Options in your Firm Settings.
  1. Select Firm Settings from the drop-down list beside your avatar.

    FirmSettings.png
  2. Click Billing & Accounting in the left menu bar, then select Billing Options from the expanded menu.

  3. Scroll down to the Default Payment Terms field if you would like to change the terms of payment for all invoices generated and select another option from the drop-down list.
    • 1%/10 net 30 – This means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days. For example, if "$1000 1/10 net 30" is written on a bill, the buyer can take a 1% discount ($1000 x .01 = $10) and make a payment of $990 within 10 days or pay the entire $1000 within 30 days.

    • 2%/10 net 30 – Allows the client to have a 2% discount for payment to a vendor within 10 days, or pay the full amount (net) of their accounts payable in 30 days.

    • Due On Receipt – Full Payment is due. No discounts applied for early payment.

    • Net 15, Net 30 and Net 60 – The net amount, or the total outstanding balance on the invoice, is expected to be paid in full and received by the seller within 15, 30 or 60 days after the goods are dispatched or service is completed.
 

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