Payment details (customer account)

Find this screen

Open: Customers > Create & Amend Accounts > New Customer

Open: Customers > Create & Amend Accounts > Amend Customer

• Use the Payment tab to set the customer's settlement discount, and payment terms.

Payment terms

Settlement discount

The settlement discount details you set here will be applied automatically when you enter an invoice, order or credit note for this customer.

When you create a new account, these will default to what you've set in the Customer Defaults and Settings, but you can change them for each customer.

• Enter the Settlement discount percentage you offer the customer.
• Enter the number of days that the customer has to pay in to qualify for the discount, in if paid within.

Settlement discounts and VAT

• In the UK, VAT on an invoice is only discounted when it is paid within the settlement discount period.

  On each invoice, VAT is calculated by default on the full invoice value. If the invoice is paid within the settlement discount period, a VAT adjustment is required, to account for the discounted VAT.

• In Ireland, VAT is calculated on the full value of the invoice regardless of any settlement discount.

Payment terms

Payment terms are used to calculate the Due Date for an invoice.

When you create a new account, these will default to what you've set in the Customer Defaults and Settings, but you can change them for each customer.

• Enter the number of days for the Payment terms (if applicable).

• Set when the due date is calculated from.

  Due date calculations are only made for invoice transactions. Credit notes always retain the same due date as the entered transaction date.

  Document date

  Invoices are due the specified number of days after the invoice date.

  For example, if the Payment terms is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 18/10/2020.

  Start of month

  Invoices are due the specified number of days after the start of the month in which an invoice is dated.

  For example, if the Payment terms is set to 30 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 31/10/2020.

  End of month

  Invoices are due the specified number of days after the end of the month in which the invoice was dated.

  For example, if the Payment terms is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 15/11/2020.

  Calendar monthly

  Invoices are due on the same day the following month.

  For example, if you enter an invoice with an invoice date of 03/10/2020, the due date will be 03/11/2020.