---
title: "Payment Terms"
---

> Documentation Index
> Fetch the complete documentation index at: https://docs.beelocity.com/llms.txt
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# Payment Terms

**Payment terms** define the agreed conditions for when and how an invoice must be paid. They are created at the organization level and then assigned to individual partners — so you define your standard terms once and reuse them across your entire partner directory.

## What Payment Terms Define

| Field                | Definition                                                                                                                    |
| -------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **Name**             | A human-readable label that describes the terms (e.g., "Net 30", "2/10 Net 30", "Due on Receipt").                            |
| **Code**             | A short system identifier (e.g., `NET30`, `DOR`). Used in references and reports.                                             |
| **Days**             | The number of days from the invoice date until payment is due.                                                                |
| **Discount percent** | An early payment discount, expressed as a percentage (optional).                                                              |
| **Discount days**    | The number of days within which the early payment discount is available (optional).                                           |
| **Description**      | A detailed plain-language explanation of the terms (optional). Useful for teams who are not familiar with payment term codes. |

When both **discount percent** and **discount days** are set, it creates an early payment incentive: "pay within X days for a Y% discount, or pay the full amount by the due date." When neither is set, it is a straightforward net-days arrangement.

## Common Payment Terms

Here are typical terms you might define for your organization:

| Term               | Code      | Days | Discount          | Meaning                                                                                             |
| ------------------ | --------- | ---- | ----------------- | --------------------------------------------------------------------------------------------------- |
| **Net 30**         | `NET30`   | 30   | —                 | Full payment due within 30 days of the invoice date. The most common standard term.                 |
| **Net 60**         | `NET60`   | 60   | —                 | Full payment due within 60 days. Common for larger orders or long-standing relationships.           |
| **2/10 Net 30**    | `2-10-30` | 30   | 2% within 10 days | Pay within 10 days and get a 2% discount. Otherwise, the full amount is due in 30 days.             |
| **Due on Receipt** | `DOR`     | 0    | —                 | Payment is due immediately when the invoice is received. Common for small or one-time transactions. |
| **Prepaid**        | `PREPAID` | 0    | —                 | Full payment required before goods are shipped. Used for new partners or high-risk transactions.    |
| **Net 90**         | `NET90`   | 90   | —                 | Extended payment window of 90 days. Sometimes used for government contracts or seasonal businesses. |

## Using Payment Terms with Partners

Each partner can have **separate payment terms** for their supplier and client roles:

- **Supplier payment terms** — the conditions under which **you pay the supplier** for goods you purchase. For example, your metal supplier might give you Net 60 terms.
- **Customer payment terms** — the conditions under which **the customer pays you** for goods you sell. For example, a retail customer might be on Due on Receipt while a corporate customer has Net 30.

A partner who is both a supplier and a client can have different terms for each side of the relationship. This is common — the terms you negotiate as a buyer are often different from the terms you offer as a seller.

When payment terms are assigned to a partner, they serve as the **default** for new transactions with that partner. This pre-fills the terms on new documents, saving time and ensuring consistency.

The **Payment Terms** list narrows on its **filter button** by **Active** or a **Days**, **Discount %** or **Discount Days** band — "terms over 60 days" is the credit-policy question ([Working with lists](../getting-started/working-with-lists.html#narrowing-the-list)).

## Setting Up Payment Terms

1. Go to **Business Partners > Payment Terms** and click **New**.
2. Fill in the name, code, days, and optionally the discount fields.
3. Add a description if the terms might be unclear to other team members.
4. Save.

### Best Practices for Setup

- **Define your standard set during initial setup** — create all the payment terms your organization commonly uses before you start adding partners. This way, the terms are ready to assign immediately.
- **Keep the list manageable** — most organizations use 4-8 standard terms. Having too many creates confusion and makes it harder to enforce consistent policies.
- **Use clear, standard names** — "Net 30" and "2/10 Net 30" are universally understood in business. Avoid inventing non-standard names that your team would need to learn.
- **Deactivate rather than delete** — when a payment term is no longer used, deactivate it instead of deleting it: open the term and use **Deactivate** under **More actions** (the three dots). Existing partners and historical documents still reference it, and deleting would break those references.

Source: https://docs.beelocity.com/en/business-partners/payment-terms/index.mdx