Payment Term – Help Center

1. Payment Term Introduction

Payment terms define the conditions under which transactions are completed, including due dates, discounts, and priority settings. They ensure clarity between buyers and sellers by specifying when payments are expected and whether any discounts apply. Key elements include Net Days to Pay, Discount Days, Discount Type, and Calculation Base, which collectively determine payment deadlines and incentives. Proper configuration of these terms helps streamline financial transactions and maintain consistency in payment processing.

Go to Administration
Click on Business Settings
Click on Payment Terms under Business Settings Action

2. Key features of the Payment Terms tab

Select All: The "Select All" option allows users to select all records in the list simultaneously. This feature is particularly helpful for carrying out bulk actions, such as deleting or downloading multiple entries at once. Once the records are selected, users can perform various actions on all the chosen items without needing to select each one individually. This functionality saves time when managing large datasets and enhances accuracy by enabling mass selection with just a single click.
Delete Selected: The "Delete Selected" option allows users to remove multiple selected payment terms from the system. This function is useful for clearing outdated or incorrect records in bulk. Before deletion, users should verify their selection to prevent unintended data loss. The system may prompt a confirmation message to ensure intentional action. This option helps maintain a clean and organized database by removing unnecessary entries.
Download Selected: The "Download Selected" option allows users to export the chosen payment terms as a file. This function is helpful for reporting, record-keeping, or sharing data with other stakeholders. Users can select specific records before downloading to ensure they retrieve only the necessary information. The downloaded file format may vary depending on system settings, commonly including CSV or JSON.
Refresh: The "Refresh" option updates the interface to show the latest data. It ensures that any new changes, additions, or deletions appear immediately. Users can refresh the page to view updated payment terms without navigating away.
Manage Priority: The "Manage Priority" option allows users to control which payment term is selected when multiple terms meet the same criteria. If two payment terms have identical tags, the system will always choose the one with the highest priority, which is the topmost entry in the list. To adjust the priority, users can click on "Manage Priority," select the three-dot menu next to the payment term they want to change, swap its position with another term, and then click "Done" to save the changes.
Add New: The "Add New" option allows users to create and enter a new payment term into the system. Users can input details such as payment code, description, and relevant terms while adding a new record.
Filter: The filter option allows users to refine the displayed payment terms based on their active status. Users can easily switch between active and inactive payment terms to manage their visibility effectively. This feature helps organize data by ensuring that only relevant records are shown.

3. Payment Terms Overview:

Code – Displays the name assigned to the payment term for identification within the system.
Merchant Code – Represents the payment term as recognized within the merchant’s internal records.
Description – Briefly explain the purpose and conditions of the payment terms.
Net Days to Pay – Defines the days for payment completion after invoicing.
Discount Days – Specifies the period within which an early payment discount can be availed.
Priority – Determines the ranking of the payment term when multiple terms have the same tags.
Discount Type – Indicates whether the discount is a fixed amount or a percentage of the total.
Percentage – Displays the percentage-based discount applied if applicable.
Amount – Shows the fixed discount value deducted from the total payment.
Calculation Base – Defines the reference point used to determine the due date for payment.
Active Toggle – Enables or disables the payment term for use in transactions.
Default Toggle – Sets the payment term as the primary option when applicable.
Assigned Tags – Categorizes the payment term for automatic assignment to relevant customers.
View Details – Allows users to access and modify detailed configurations of the payment term.

Click on View Details.

Field Descriptions:

Code: The "Code" field specifies the name of the payment term used in the system. It helps differentiate this payment term from others for improved organization.This field is mandatory and must be completed to proceed with the configuration.
Merchant Code: The "Merchant Code" is the payment term used in the merchant's internal system. It helps businesses match their internal references with the platform's payment terms. This code makes sure the correct payment term is used when processing transactions.
Description: The "Description" field provides additional details about the payment term. It helps users understand the conditions under which the payment should be made. A well-written description improves clarity and prevents misinterpretation.
Net Days to Pay: Net Days to Pay defines the number of days allowed for payment after the specified calculation base date. This value determines when the payment is due. It helps in setting clear payment terms to avoid delays and misunderstandings. The due date is calculated by adding the net days to the chosen calculation base. If the value is set to zero, the payment is expected immediately.
Discount Days: Discount Days specify the days within which an early payment discount can be availed. This encourages buyers to make payments sooner, benefiting both parties by improving cash flow. If the payment is made within the discount days, the percentage- or amount-based discount type is applied. No discount is granted if the payment is made after the discount period.
Priority: Priority determines which payment term is applied when multiple terms share the same tags. The payment term listed at the top has the highest priority and is automatically selected. Users can adjust the priority by using the "Manage Priority" option to rearrange the order of the terms. By changing the priority, users ensure that the most relevant payment term is chosen first.
Discount Type : It defines how a discount is applied to the payment, either as a fixed amount or a percentage of the total invoice, order or shipment. A specific percentage value must be provided if the percentage option is selected. If the amount option is selected, a fixed discount value is required. This selection directly affects the calculation of the final payment amount.
Percentage : The Percentage field is mandatory when the discount type is set to percentage-based. It specifies the percentage of the total invoice amount that will be deducted as a discount.
Amount : The Amount field is required when the discount type is set to amount-based. It specifies a fixed discount value that is subtracted from the total payment. This field allows for precise discounting, making it easier to control pricing adjustments.
Calculation Base: The Calculation Base determines the reference date from which the due date and discount days are calculated. Depending on business requirements, it can be set to the Invoice Date, Order Date, or Shipment Date. Selecting the appropriate calculation base ensures accurate due date calculations for payments.
Attributes (Active & Default): The "Active" toggle determines whether the payment term is currently in use. If enabled, the payment term will be available for selection in transactions. The "Default" toggle allows users to set this as the primary payment term for applicable transactions.
Assign Customer Tags: This feature helps you group customers based on their payment terms.The "Assign Customer Tags" section allows users to associate payment terms with specific customer categories. This helps automatically apply the correct payment terms to relevant customer groups. Users can select predefined tags or create new ones to categorize customers effectively.
Select by Tags
The "Select by Tags" button lets users easily filter and assign customer tags. It provides a list of tags to apply payment terms based on predefined customer categories.
Save & Cancel Buttons
The "Save" button confirms all changes and updates the payment term details in the system. It ensures that the configured settings are applied for future transactions. The "Cancel" button discards any modifications and exits the setup without saving.