Go to the Misc/Setup pull-down menu, and choose the Payment Terms option.
This screen allows you to set up the terms for payment that you allow for your clients, such as Net 10, Net 30, and Due Upon Receipt. These Payment Terms are used when an order is marked as “Done” to set up the Bills for a client.
A Payment Term has a description and a Payment Term Schedule. The grid for the Payment Term Schedule has two columns: Days from Primary Date, and Percentage.
The Days from Primary Date column is the number of days from when the order is done until Percentage percent of the Order Total Price is due.
EXAMPLE: On the “Upon Receipt” Payment Term, you would set the Days from Primary Date to 0 and the Percentage to 100.
EXAMPLE 2: On a “Net 30” Payment Term, you would set the Days from Primary Date to 30 and the Percentage to 100.
EXAMPLE 3: You could set up a “Three Month Payment Plan” where you have three entries in the Payment Term Schedule that looked like this:
Days from Primary Date Percentage
30 33.34
60 33.33
90 33.33
In this instance, if a client had an order totaling $200 that was finished on 1/1/1999, and you applied the “Three Month Payment Plan” payment term, then they would end up with 3 separate bills, one due on 1/31/1999 for $66.68, one due on 3/2/1999 for $66.66, and one due on 4/1/1999 for $66.66. However you set it up, you will always want a particular Payment Term's schedule Percentages to add up to 100.
When you click the Make Default button, whichever payment term you are currently looking at will become your default payment term for new orders. So whenever you enter a new order, the payment terms on the order will already be set to that one. Usually the default payment term should be Upon Receipt which just means that the payment is due as soon as the work is done. See the topic for entering a new order for more information.
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