Payment terms indicate when you expect to receive a payment from a customer or when you pay bills to your vendor. QuickBooks supplies a list of often - used payment terms in the Terms list.
Add payment terms
Select Lists at the top > Customer & Vendor Profile Lists > Terms List.
From the Terms drop - down on the left, choose New.
Enter your preferred name for the payment term, then choose:
Standard - If you want to have a payment due within a specific number of days from the invoice date.
For example: Your invoices are due within 25 days of receipt and you give your customers a 1% discount if they pay within 10 days.
Date Driven - If you want to enter the day of the month that a payment is required within the due date.
For example: Your invoices are due on the 25th day of the month and you give your customers a 1% discount if they pay before the 10th of the month. To let QuickBooks know that "25" means the "25th day of the month" and not "25 days after the invoice date", enter 1% 10 Net 25.
Select OK to close or Next to create another payment terms.
Date - Driven
Enter the number of days in which payments from customers or bills to vendor are due.
Enter the day of the month by which payment is due.
Due the next month if
To handle cases in which invoices or bills are issued just prior to the due date. If the invoice or bill is issued within the number of days you enter, payment is not due until the following month.
Enter the discount percentage a customer earns for early payment of an invoice or that your business earns for early payment of a bill. If there is a discount, also complete the next field ("Discount if paid"). If there is no discount, enter zero.
Discount if paid
Enter the number of days within which a customer or your business can pay and receive a discount for early payment. Be sure to enter the discount percentage in the previous field ("Discount percentage").