A payment term is a credit term you extend to a customer or accept from a supplier, expressed as a duration and a unit, for example 30 days or 2 months. When you put a payment term on an invoice or bill, ZyncLedger uses it to calculate the due date, and that due date is what drives the aging on your balance and aging reports. The bookkeeper or accountant sets up the terms once, and everyone picks from the list.

How a payment term sets the due date

The due date is the transaction date plus the term's duration:

  • Immediate (a duration of 0) makes the invoice or bill due on its transaction date.
  • Net 30 adds 30 days.
  • A term in months or years advances the calendar by that many months or years.

The due date then places the amount in an aging bucket (current, then overdue by increasing periods) on the Customer Balance & Aging and Supplier Balance & Aging reports. Payment terms are used on Invoices, Bills, and Bill Credits.

You can set a Default Payment Term on a customer or supplier, and a business-wide default under Settings → Defaults, so the term and due date arrive pre-filled on new transactions.

Before you start

ZyncLedger seeds four payment terms for every new business: Immediate, Net 30, Net 60, and Net 90. Add more only if you offer terms these do not cover.

You need the create payment terms permission to add one, and the approve payment terms permission to approve it. Both are set per user under Permissions.

Create a payment term

  1. Open the Payment Terms list

    Go to Lists → Payment Terms. The list shows every term with its Status (Active or Inactive, and Approved or Pending).

  2. Start a new term

    Select Add Payment Terms. The Create New Payment Term panel opens from the right.

  3. Name the term

    Type the Payment Term Name (required), for example Net 45 or End of Month. Each name must be unique. The name is a label only; the duration below is what actually sets the due date.

  4. Set the duration

    Enter the two fields that define the credit period:

    FieldWhat it does
    Duration Count (required)The whole number of units of credit. Enter 0 for a term that is due immediately.
    Duration Unit (required)The unit: Days, Weeks, Months, or Years. Defaults to Days.

    A Preview below the fields shows the term as it will read, for example 45 days.

  5. Set the status flags

    Two checkboxes control whether the term can be used:

    FieldWhat it does
    ActiveOn by default. An inactive term stays for history but is not offered on new transactions.
    ApprovedOff by default. A term is only offered for selection once it is both Active and Approved. Ticking this needs the approve permission.

  6. Save

    Select Create Payment Term. The term appears in the list and, once approved, in the payment-term dropdown on invoices, bills, and bill credits.

Approval gates availability

A new term is created as Pending until someone with the approve permission approves it, and it will not auto-select on a transaction until then. If a term you created is not showing up on an invoice or bill, check that it is both Active and Approved on this screen.

Edit, deactivate, or delete

Select the edit icon on any row to rename a term, change its duration, or change its flags. Editing a term does not change the due date already saved on past transactions; it only affects transactions you enter afterwards. To retire a term without losing history, clear its Active flag rather than deleting it.

Heads up

ZyncLedger blocks deleting a payment term that is already used on any transaction, and asks you to deactivate it instead. Only terms that have never been used can be deleted.

Related

  • Customers — set a default payment term per customer.
  • Suppliers — set a default payment term per supplier.
  • Invoice — where the term sets the customer's due date.
  • Bill — where the term sets the supplier's due date.
  • Payment Methods — the companion list for how money is received and paid.