Payment Terms
Payment Terms define when invoices are due — net 30, end of month, instalments — and can be templates applied across multiple invoices.
Where to manage
| Concept | Where |
|---|---|
| Payment Term | A single term ("30 days net", "50% upfront 50% on delivery") |
| Payment Terms Template | A bundle of Payment Terms applied as a unit |
Both in the Awesome Bar.
Create a Payment Term
Payment Term → New:
| Field | What |
|---|---|
| Payment Term Name | "30 Days Net", "Immediate", "50% on Order, 50% on Delivery" |
| Due Date Based On | Day(s) after invoice / Day(s) after the end of the invoice month |
| Credit Days | 30 (for net-30) |
| Description | What customers see |
Create a Payment Terms Template
Payment Terms Template → New:
| Field | What |
|---|---|
| Template Name | "Standard 30 Days", "Phased Payment", … |
| Terms | Add rows referencing existing Payment Terms |
For a "50% upfront, 50% on delivery" structure, add two Payment Term rows:
- Term 1: 50%, due immediately
- Term 2: 50%, due 30 days after invoice
When you apply this template to a Sales Invoice, ERPNext splits the invoice into two scheduled payments automatically.
Default Payment Terms
Set defaults at three levels (most specific wins):
| Level | When to use |
|---|---|
| Per Customer / Supplier | Specific accounts with negotiated terms |
| Customer Group / Supplier Group | Standard terms for a category |
| Selling/Buying Settings | Site-wide default |
Effect on invoices
When the Payment Terms apply:
- Due Date on the invoice is computed (or the Payment Schedule child table is filled for instalments)
- The Receivables / Payables Overview shows when each part is due
- Reminders can be scheduled per-instalment
Common situations
- Government customer with 60 days — Customer Group "Government" with Default Payment Terms = "60 Days Net"
- Prepayment-only customer — Term "Immediate"; an unpaid Sales Order can be blocked from delivery
- Subscription business — Auto-Repeat invoices with a 14-day net term
- Project with milestones — Payment Terms Template with 3 rows (25% start, 50% midway, 25% on completion)
Last updated 3 days ago
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