When you sell goods or render services on credit, one of the ways to drive prompt payment is to create terms on payment - which is the periods within which your customers are expected to pay for invoice created.

This terms of payment is not static - it changes as situations demand.

When you see terms like 1% 10 Net 30: it means that the customer will be given 1% discount if he pays within 10 days otherwise, in 30 days the full invoice amount suffixes.

12%  5 Net 30 - The customer is expected to pay in 30 days but if he pays within 5 days, he receives a 12% discount.

Net 15: Your customers has only 15 days to pay for the invoice issued.

These are some of the terms businesses state on their invoice to a customer.





To set up terms in Quickbooks, click List, select Customer & Supplier Profile List and click Terms List.


You will the see already existing terms for your business if you have any.


See the description of the above terms at the beginning of this post.

To set up a new payment terms in Quickbooks, Click Terms and Select New




A Terms of payment window pops up:


Terms: Enter the description of your payment terms

Net Due In: Enter the maximum allowable period the invoice is due for payment.

Discount Percentage is: Enter the discount allowed if payment is made in your preferred period.

Discount if paid within: Enter your preferred period the customer is expected to pay to qualify for Discount percentage

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