A net payment term refers to the specified number of days within which the end customer is required to settle the invoice after its finalization.
This term not only affects the
payment_due_date within the invoice payload but also influences the due date mentioned in the downloadable PDF version of the invoice.
To illustrate, consider the following scenario: a billing cycle spanning one month, accompanied by a net payment term of 15 days.
Illustration of the net payment term period
The net payment term period applies to all types of invoices.
It does not trigger any webhook when the
payment_due_date becomes overdue.
The organization’s net payment term applies to all customers by default.
To define a net payment term at the organization level via the user interface, follow these steps:
- Access the “Settings” section using the side menu;
- Navigate to the “Invoice” tab;
- Click “Edit” in the “Net payment term” section;
- Select the desired number of days for the payment term or opt for a custom duration; and
- Confirm by clicking “Edit net payment term”.
To define a net payment term at the customer level through the user interface, follow these steps:
- Access the “Customers” section via the side menu;
- Select a customer from the list;
- Open the “Settings” tab of the customer view;
- Click “Add a net payment term” in the “Net payment term” section;
- Choose the desired number of days for the payment term or opt for a custom duration; and
- Click “Add net payment term” to confirm.
The customer’s net payment term supersedes the one defined at the organization level. It exclusively applies to the associated customer.