Payment terms tell the customer (and Run a Call) when an invoice is due. They drive the due date, the overdue reminder cadence, and the AR aging buckets.
The options
| Term | Meaning |
|---|---|
| Due on receipt | Due the day you send it. |
| Net 7 / 15 / 30 / 45 / 60 | Due N days after the invoice date. |
| Custom date | Pick a specific due date. |
Setting terms per invoice
On any invoice, change the Terms dropdown next to Date. The due date updates instantly.
Setting default terms per customer
If a customer always gets net 30, set it once on their profile:
- Open the customer.
- Billing tab → Default payment terms → pick.
- Save.
Going forward, every new invoice for that customer starts on net 30.
Commercial customers often need net 30 or net 45. Residential is almost always Due on receipt — they pay on the spot or you chase.
Terms on milestone invoices
When you invoice a milestone from a payment schedule, the dialog asks for terms right there — Due on receipt, Net 7/15/30, or a custom number of days — with a live due-date preview. Two things to know:
- Deposits are always due on receipt. The deposit generates automatically at approval; net terms on a deposit defeat the point.
- Each milestone gets its own terms — Net 15 on rough-in and due-on-receipt at completion is fine.
How overdue reminders use terms
Run a Call sends overdue reminders based on the due date + your reminder cadence (default: 1, 7, 14, 30 days after due). Without payment terms, every invoice would be considered immediately overdue.
Terms and QuickBooks
When invoices sync to QBO, payment terms map to the QBO Terms dropdown. Make sure your QBO file has matching term names (Net 30 matches Net 30) or QBO will create new term entries. See How invoice details sync to QuickBooks Online.