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What's important about the New, Edit Terms window

Use this window to add new payment terms to your Terms list and to change the details for terms that are already on the list.

To set up payment terms

  1. In the Terms field, enter a word or phrase to help you recognize the terms when you use the Terms list. What you enter in this field will be displayed on the list.

    Example

    Standard payment terms

    Your invoices are due within 25 days of receipt, and you give your customers a 1% discount if they pay within 10 days. These are standard terms, because payment is due within a specific number of days from the invoice date.

    In the New Terms window, click Standard and enter 1% 10 Net 25.

    Date-driven payment terms

    Your invoices are due on the 25th day of the month, and you give your customers a 1% discount if they pay within 10 days.

    To let QuickBooks know that "25" means the "25th day of the month" and not "25 days after the invoice date," click Date Driven in the New Terms window and enter 1% 10 Net 25.

  2. Indicate the type of terms that you want to use:

    Click Standard if you want customers to pay within a certain number of days.

    Click Date Driven if you want customers to pay by a certain date.

  3. Fill in the fields for "Net due," "Discount percentage," and "Discount if paid."

    More detail

    Net due

    For standard terms, enter the number of days in which payments from customers or bills to vendors are due.

    For date-driven terms, enter the day of the month by which payment is due.

    Due the next month if

    Used for date-driven terms only, to handle cases in which invoices or bills are issued just prior to the due date.

    If the invoice or bill is issued within the number of days you enter, payment is not due until the following month.

    Discount
    percentage

    Enter the discount percentage a customer earns for early payment of an invoice or that your business earns for early payment of a bill. If there is a discount, also complete the next field
    ("Discount if paid").

    If there is no discount, enter zero.

    Discount
    if paid

    Enter the number of days within which a customer or your business can pay and receive a discount for early payment. Be sure to enter the discount percentage in the previous field ("Discount percentage").

  4. Record the payment terms.

    Record
KB ID# H_LIST_TASK_SETUP_PMT_TERMS
9/29/2016 4:52:19 AM
QYPPRDQBKSWS09 9138 Pro 2017 63037d