---
title: "Payment Terms"
space: "ERPNext"
url: "https://www.prilk.com/docs/erpnext/payment-terms"
updated: "2026-05-15"
---

## Payment Terms

Payment Terms define when invoices are due — net 30, end of month, instalments — and can be templates applied across multiple invoices.

### Where to manage

| Concept | Where |
|---|---|
| **Payment Term** | A single term ("30 days net", "50% upfront 50% on delivery") |
| **Payment Terms Template** | A bundle of Payment Terms applied as a unit |

Both in the Awesome Bar.

### Create a Payment Term

**Payment Term → New**:

| Field | What |
|---|---|
| **Payment Term Name** | "30 Days Net", "Immediate", "50% on Order, 50% on Delivery" |
| **Due Date Based On** | Day(s) after invoice / Day(s) after the end of the invoice month |
| **Credit Days** | 30 (for net-30) |
| **Description** | What customers see |

### Create a Payment Terms Template

**Payment Terms Template → New**:

| Field | What |
|---|---|
| **Template Name** | "Standard 30 Days", "Phased Payment", … |
| **Terms** | Add rows referencing existing Payment Terms |

For a "50% upfront, 50% on delivery" structure, add two Payment Term rows:
- Term 1: 50%, due immediately
- Term 2: 50%, due 30 days after invoice

When you apply this template to a Sales Invoice, ERPNext splits the invoice into two scheduled payments automatically.

### Default Payment Terms

Set defaults at three levels (most specific wins):

| Level | When to use |
|---|---|
| **Per Customer / Supplier** | Specific accounts with negotiated terms |
| **Customer Group / Supplier Group** | Standard terms for a category |
| **Selling/Buying Settings** | Site-wide default |

### Effect on invoices

When the Payment Terms apply:
- **Due Date** on the invoice is computed (or the Payment Schedule child table is filled for instalments)
- The Receivables / Payables Overview shows when each part is due
- Reminders can be scheduled per-instalment

### Common situations

- **Government customer with 60 days** — Customer Group "Government" with Default Payment Terms = "60 Days Net"
- **Prepayment-only customer** — Term "Immediate"; an unpaid Sales Order can be blocked from delivery
- **Subscription business** — Auto-Repeat invoices with a 14-day net term
- **Project with milestones** — Payment Terms Template with 3 rows (25% start, 50% midway, 25% on completion)