Use the Define Payment Terms page to define when customers pay for their goods and services. It is common for such terms to be included in a customer’s license or services contract (the contract that governs the subscription).
The following payment term options are available:
- Net Payment Term. For this option, the payment interval between the invoice date and the due date is a fixed number of days that you determine. The default payment term is Due Upon Receipt, which means the due date is the day the invoice is received.
- Prox Payment Term. This option lets you define the day of the month for the invoice to be sent, the payment interval before the due date (in months), and the day of the month on which the due date occurs.
Create a Payment Term
To create a payment term:
- In Billing Settings, click Payment Terms.
- Click add new payment terms and select the option you want (Net Payment Term or Prox Payment Term).
- Complete the fields that appear for the option selected.
- Click save.
- To activate the payment term so that it is available, locate the payment term on the Customize Payment Terms list page and click Activate.
If the invoice date or payment due date is greater than the maximum number of days in a given month, these dates default to the end of the month value.
Net Payment Term Examples
|Invoice Date||Number of Days||Due Date|
|August 1||30||August 31|
|August 1||15||August 16|
Prox Payment Term Examples
|Invoice Date||Invoice Cutoff Date||Number of Months||Payment Due Day||Due Date|
|August 10||The 12th of the month||1||The 20th of the month||September 20|
|August 15||The 12th of the month||1||The 20th of the month||October 20|
|August 21||The 12th of the month||1||The 20th of the month||October 20|
|August 10||The 20th of the month||1||The 12th of the month||September 12|
|August 15||The 20th of the month||1||The 12th of the month||September 12|
|August 21||The 20th of the month||1||The 12th of the month||October 12|
|August 21||The 20th of the month||3||The 12th of the month||December 12|
|August 15||End of month||1||End of Month||September 30|
|January 1||The 5th of the month||1||The 30th of the month||February 28|