Payment Terms¶
Before you start¶
This article provides an overview of the Payment Terms table within References. Payment Terms define the agreed terms by which an invoice is to be paid.
Completely optional
Payment Terms is a purely optional area of Paperwork. It comes down to individual organisations' business logic whether or not it is used.
Understanding Payment Terms¶
Payment Terms in Dsposal's Paperwork include the following information:
- Finance Code: The code that serves as a reference for the payment term.
- Specify the number of day(s): The number of days defining the payment term.
- Payment Term Type: A choice of different types of payment terms:
- Day(s) after bill date: E.g., 30 for 30 days after the bill date.
- Of the current month: E.g., 15 for invoices due on the 15th of the current month or 15 for the 15th of the next month.
- Of the next month: E.g., 15 for invoices due on the 15th of the next month.
- Of the month after next: E.g., 15 for invoices due on the 15th of the month after next.
- End of month: E.g., 0 for the end of the current month or 1 for the end of the next month.
- Archived: Indicates whether the payment term is archived or active.
- Action: Dropdown menu providing options to view/edit or archive the payment term.
Adding a Payment Term¶
- Click on the "Add Payment Term" button.
- Enter the required information in the provided fields:
- Finance Code: Provide the reference code for the payment term.
- Specify the number of day(s): Enter the number of days defining the payment term.
- Payment Term Type: Select the appropriate type of payment term from the list.
- Click "Submit" to save the new payment term.
Managing Payment Terms¶
Organisations can manage Payment Terms by:
- Adding new payment terms: Define new terms by which invoices should be paid.
- Editing existing payment terms: Update information such as the finance code, number of days, or payment term type.
- Archiving payment terms: Mark payment terms that are no longer in use to streamline the list and improve usability within Paperwork.
Uses¶
Payment Terms are used in the following areas of Paperwork:
Payment Terms play a crucial role in financial management, helping to ensure clear agreements on invoice payments and improving the overall cash flow management of an organisation.