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Payment Terms

Setting clear payment terms is essential for managing your company's cash flow and ensuring consistency across invoices and sales orders. Invent ERP allows you to define flexible payment structures — whether it's upfront payments, split installments, or delayed due dates.

Why Payment Terms Matter​

  • Clarity for customers and vendors: Everyone knows when payment is due.
  • Accurate due dates on invoices: Automatically calculated.
  • Better cash flow forecasting: Plan collections and disbursements.
  • Internal consistency: Applied across contracts, orders, and invoices.

How to Create Payment Terms​

Method 1: Quick Add from Within a Transaction​

  1. Go to any Quotation, Sales Order, Purchase Order, or Invoice.
  2. In the Payment Terms field, click Quick Add.
  3. A pop-up window will appear to define the new term.

Step 1 - Quick Add from Transaction Step 1 - Quick Add from Transaction

Method 2: Create from Dropdown​

  1. In any transaction, click on the Payment Terms field.
  2. Scroll to the bottom of the dropdown and click Create New.

Step 2 - Create from Dropdown

Method 3: Manage All Terms​

To manage existing terms fully: Navigate to Main Menu → Accounting → Configuration → Invoicing → Payment Terms.

Step 3 - Manage All Terms Step 3 - Manage All Terms Step 3 - Manage All Terms

Best Practices​

  • Use clear and descriptive names (e.g., "50% Now – Balance in 30 Days").
  • Assign default terms to customers and vendors for automation.
  • Regularly review active terms to ensure accuracy and relevance.

FAQ​

Q: Can I set mixed terms like part in advance, part later? Yes. You can define multiple lines within a single payment term (e.g., 50% now, 50% in 30 days).

Q: Will editing a payment term affect past invoices? No. Changes only apply to new transactions going forward.

Q: What happens if no term is selected? The system will use the default payment policy defined for the customer or vendor, or apply the system default (often "Immediate Payment").