Payment Terms in CustomBooks™

Payment Terms in CustomBooks™

Payment Terms

Payment Terms are the agreed-upon conditions between a buyer and seller that specify when a payment for goods or services is due. These terms define the period within which payment must be made, any early payment discounts, and penalties for late payments. Payment terms ensure clarity and help both parties manage cash flow effectively.

In CustomBooks™, Payment Terms appear on sales documents such as Sales Orders, Shipments, and Sales Invoices and are fully customizable. To help you get started, the following terms are pre-added to your account:
  • Due on Receipt
  • Consignment
  • Net 30
  • Net 15


You can create, edit, or delete additional Payment Terms as needed.

Creating Payment Terms

  1. Navigate to List > Payment Terms.
  2. Click Create > New.
  3. Enter a Description that will appear on printed, emailed, and on-screen documents in the Payment Terms field.
  4. Optionally, enter an early payment discount percentage* and the number of days* it applies, if applicable.
  5. Click Save or Save and Close to store the Payment Term.
Note: The 'Discounts in Cash Receipt and Bill Payments' feature must be enabled in General Settings to use the discount fields. See this article for more instructions.



The Days field determines the Due Date on Sales Invoices and represents the number of days from the Invoice Date. Entering a zero will result in the Due Date being the same as the Invoice Date.

See How to Create and Assign Payment Terms

This video shows how to create a new Payment Term in CustomBooks, set an early payment discount, and apply Payment Terms to sales invoices or assign default terms to a customer.

Video Summary

To create a Payment Term, go to Lists > Payment Terms and select Create > New. Enter a description, specify the number of days, and enter an early payment discount percentage when applicable. Once created, Payment Terms can be applied to sales invoices or assigned as the default terms for a customer from the customer's Financial tab.

Key Takeaways

  • Create Payment Terms from Lists > Payment Terms.
  • Enter a description, number of days, and an early payment discount percentage when applicable.
  • Payment Terms can be applied directly to sales invoices.
  • Default Payment Terms can be assigned to a customer from the customer's Financial tab for use on future Sales Invoices.
＋ Read the Full Video Transcript

In this video, we’re going to show you how to create a new Payment Term in CustomBooks. Payment Terms are a great way to encourage customers to pay their bills on time while also offering incentives for early payments.

To get started, go to Lists and select Payment Terms. Here, you’ll see the list of Payment Terms currently in your CustomBooks account. Click Create and select New.

For this example, we’ll set up a 5% discount if paid within 5 days.

First, enter a description, then specify the number of days, and finally, enter the percentage discount for early payments.

Once your Payment Terms are set up, you can apply them directly to sales invoices or assign them to specific customers.

To assign terms to a customer, go to Lists and select Customer. Open a customer record, then click on the Financial tab. Here, you can set the default Payment Terms for this customer, ensuring that any future Sales Invoices will automatically apply these terms.

Setting up Payment Terms in CustomBooks is a simple way to encourage timely payments and offer incentives for early payments.