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Create Payment Terms
Negotiate and define payment terms to set a due date for payments and collect payments in a timely manner. You can anticipate or enforce the date by when payments for outstanding invoices must be paid.
Required Editions
| Available in: Lightning Experience |
| Available in: Enterprise, Performance, Unlimited, and Developer Editions with the Revenue Cloud Advanced license or the Revenue Cloud Billing license |
| User Permissions Needed | |
|---|---|
| To create payment terms and payment term items: | Billing Admin permission set |
- Examples: Payment Terms
Explore two examples that demonstrate how payment terms determine the payment due dates for invoices.
Create Payment Terms
A payment term is a formal agreement that defines the date by which an invoice must be paid.
- From the App Launcher, find and select Payment Terms.
- Click New.
- Enter a name for the payment term.
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Select a status.
When you create payment terms, you can select the status as either Draft or Inactive. If you select the status as Inactive, you can't change it to Draft.
You can't select the status as Active without creating a related payment term item.
- To make this the default payment term for your Salesforce org, select Default.
- If necessary, enter a description.
- Save your changes.
After you create a payment term, create a corresponding payment term item.
Create Payment Term Items
Payment term items define the specific configuration for payment terms.
- From the App Launcher, find and select Payment Terms.
- Open the Payment Term record for which you want to create an item.
- On the Payment Term Items related list, click New.
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Select a type for the payment term item.
- To calculate the invoice due date by adding the period to the invoice date, select Period-Based.
- To calculate the invoice due date by adding the period to the last day of the month in which the invoice date falls, select Derive End of Month and Add Period.
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Enter the period.
When the type of the payment term item is Derive End of Month and Add Period, to set the due date as the last day of the month in which the invoice is posted, enter 0 as the period.
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To indicate that the payment term is for a standard payment, select
Standard as the payment timeframe.
Each payment term can have only one payment term item with a Standard payment timeframe.
- If you have entered a period, select the unit of measurement for the period.
- If necessary, enter a description.
- Save your changes.
After you create the payment term item, complete these steps:
- Change the status of the payment term to Active. Only active payment terms can be used to determine the due dates of invoices.
- Go to the Order records and specify the relevant payment term.
The same payment terms are autopopulated for the billing schedules that are generated for these orders, and eventually used to determine the due dates of the invoices.
