Payment Terms

The Payment Terms tab manages reusable payment configurations that control due dates, deposit requirements, and payment conditions on quotes and invoices.

The Payment Terms page

The main page displays all your configured payment terms in a list format.

Page header

• New Payment Term button: Create a new payment configuration
• Description: Manage reusable payment term configurations for invoices and quotes

Payment terms list

When terms exist, they display with:

• Name: The term identifier (e.g., “Net 30”, “50% Deposit”)
• Type: The payment term category
• Status: Active or Inactive
• Default indicator: Which term is the business default

Creating a payment term

Click New Payment Term to create a reusable payment configuration.

Payment term form fields

Name* (Required)

• Short identifier for the term
• Appears in dropdowns when creating quotes/invoices
• Keep it clear and descriptive
• Examples: “Net 30”, “50% Deposit”, “Cash on Delivery”

Description

• Optional explanation of the term
• Internal reference only
• Useful for clarifying when to use this term
• Example: “30 days from invoice date for established clients”

Payment Term Type* (Required)

• Defines how the due date is calculated
• Options include:
  • Credit: Standard payment terms (e.g., Net 7, 14, 30)
  • Cash: Immediate payment required
  • Deposit: Upfront deposit with balance due later
  • Installment: Multiple payments over time

Payment Details

• Bank transfer instructions or payment notes
• Displayed on client-facing invoices
• Include BSB and account number for AU bank transfers
• Example: “Please transfer to BSB 062-000 Account 12345678”

Set as default payment term

• Checkbox to make this your business default
• Pre-selected when creating new quotes/invoices
• Only one default term can exist
• Changing this updates the default for all future documents

Active

• Checkbox to enable or disable the term
• Inactive terms don’t appear in dropdowns
• Useful for seasonal or retired terms
• Can be reactivated later

Creating the term

Click Create Payment Term to save. The term is now available for use in quotes and invoices.

Payment term types explained

Credit terms

Standard payment terms where the client pays within a specified period.

Common patterns:

• Net 7: Payment within 7 days
• Net 14: Payment within 14 days (2 weeks)
• Net 30: Payment within 30 days (common AU standard)
• Net 60: Payment within 60 days (for large clients)

When to use:

• Regular business transactions
• Established client relationships
• B2B services and products

Cash terms

Immediate payment required at time of transaction.

Variations:

• Cash on Delivery (COD): Pay when goods arrive
• Cash with Order: Pay when placing order
• Cash on Pickup: Pay when collecting goods

When to use:

• Retail sales
• New client first transactions
• High-risk transactions
• Low-value items

Deposit terms

Require an upfront deposit with balance due later or on completion.

Common structures:

• 50% Deposit: Half upfront, half on completion
• 30/70 Split: 30% deposit, 70% on delivery
• Milestone Payments: Deposits tied to project milestones

Configuration:

• Set deposit percentage (e.g., 50%)
• Define when balance is due (e.g., “on completion”, “30 days from invoice”)
• Multiple invoices may be generated automatically

When to use:

• Large projects or orders
• Custom work requiring materials purchase
• Extended timeline projects
• New client relationships

Installment terms

Spread payments over multiple dates or milestones.

Common patterns:

• Equal installments: Split total into equal payments
• Milestone-based: Payments tied to project phases
• Monthly payments: Regular monthly amounts

When to use:

• High-value projects
• Retainer agreements
• Subscription-style services
• Long-term engagements

Managing payment terms

Setting a default term

1. Open the payment term you want as default
2. Check “Set as default payment term”
3. Save changes
4. This term now pre-selects on new quotes/invoices

Note: Changing the default doesn’t affect existing drafts - only new documents.

Editing terms

1. Click the payment term in the list
2. Modify any fields as needed
3. Save changes
4. Changes apply to future uses - existing quotes/invoices keep original terms

Archiving terms

1. Open the payment term
2. Uncheck the “Active” checkbox
3. Save changes
4. Term no longer appears in dropdowns
5. Historical documents retain the archived term

Reactivating terms

1. Change filter to show inactive terms (if available)
2. Open the archived term
3. Check the “Active” checkbox
4. Save changes
5. Term reappears in dropdowns

Using payment terms

In quotes

1. In the Quote Editor, find the Payment Terms field
2. Select from your configured terms
3. If client has client-specific terms, those override the selection
4. Due date calculates automatically based on the term
5. Term description appears on client-facing quotes

In invoices

1. When a quote is accepted and an invoice is auto-created, payment terms carry over
2. On new invoices, select terms or use default
3. Due date calculates from invoice date + term period
4. Terms appear on client invoices

Client-specific terms

Clients can have their own payment terms that override your business default:

1. Go to Quotes > Clients
2. Open the client
3. In Business Information, set Client Payment Terms
4. This term auto-applies to quotes/invoices for this client

AU-specific notes

• BSB/Account: Include Australian banking details in Payment Details
• ABN: Payment terms may reference ABN for tax invoice compliance
• GST: Payment terms don’t affect GST calculation but may affect cash flow
• Contract terms: Align payment terms with AU contract law requirements
• Late payment: Consider referencing late payment fees under AU consumer law

Best practices

Term design

• Clear naming: Use industry-standard terminology (“Net 30” vs “30 days”)
• Consistent application: Apply terms fairly across similar clients
• Documented policy: Have written payment policies for staff reference
• Legal review: Have terms reviewed for AU compliance

Default selection

• Match your cash flow needs: Shorter terms improve cash flow
• Industry standards: Align with typical terms in your sector
• Client expectations: Balance your needs with client payment practices
• Consider deposits: For large or risky projects

Managing multiple terms

• Limited selection: Too many terms confuse staff
• Clear distinction: Each term should have a clear use case
• Regular review: Archive terms no longer used
• Staff training: Ensure team knows when to use each term

Client communication

• Quote clarity: Terms clearly stated on all quotes
• Invoice consistency: Same terms as quoted
• Payment details: BSB/account visible on invoices
• Follow-up: Clear process for overdue payments

Common term examples

Integration with workflow

Quote to invoice

• Payment terms flow from quote to invoice automatically
• Deposit invoices generated based on term configuration
• Balance due dates calculate from acceptance date

Reporting

• Payment terms appear in invoice aging reports
• Track which terms correlate with late payments
• Analyze cash flow by term type

Client management

• Set client-specific terms for negotiated arrangements
• Override defaults for special cases
• Consistent terms build predictable cash flow