How to Create Payment Terms in QuickBooks

QuickBooks terms offer a shortened description, and calculate on an invoice, when you expect to receive payment from a customer, or when a vendor expects to receive payment from you. For example, 1% 10 Net 30 is an expression for payment due in 30 days, 1% discount, if paid within 10 days.

To practice creating a payment term, open a sample data file. You might also use these instructions if you are creating a new payment term in your own data file:

1. From the menu bar select Lists, Customer & Vendor Profile Lists, Terms List. A list of terms displays, as shown in the image below:
   

   Terms lists calculate due dates on customer and vendor transactions.

2. In the Terms drop-down list, select New. The New Terms dialog box displays, as shown here:
   

   Complete all the fields when creating a new payment term.

3. In the Terms field, type 45 Days.
4. Select the Standard option and type 45 in the Net Due In field.
5. Click OK. You are returned to the Terms List.
6. (Optional) Click the Reports button and then select QuickReport to prepare a report of transactions using the selected term.
7. You can now assign this term to customer and vendor transactions.

If you want the due date to be a specific date, use the Date Driven terms and complete the necessary fields.