Creating and Managing Payment Terms

Adam Graetz
Adam Graetz
  • Updated

This article will cover how to specify your payment terms for services within ServiceTrade.

Setting Default Payment Terms

You can use ServiceTrade's account settings to define which payment terms you want to make available to your users in ServiceTrade, and which payment terms option should be used as the default. 

Note: To edit your payment terms settings, you must be an administrator in your ServiceTrade account. 

  1. First, click on your Profile Image in the upper right corner of ServiceTrade, then choose Account Settings.
  2. Click to open the 'Payment Terms' section to view the account settings for payment terms.
    ST-Office-Payment_Terms.png
  3. In the Payment Terms section, you can choose which specific payment terms you want your users to use in ServiceTrade.
    If there are payment terms in this list that you never intend to use -- for instance if you never offer Net 90 terms to your customers -- then uncheck that option and it will not appear in payment terms dropdown lists elsewhere in ServiceTrade.
  4. In the Default Payment Terms sub-section, you can choose which payment terms option your users should use by default. You should choose whichever payment terms option you use most commonly here -- for instance, if you typically offer 30-day terms to your customers, then you should select 'Net 30' as your default payment terms.

    Note: The default payment terms selection that you make will be automatically applied to all new contracts that you create. It will also be applied to all new Invoices that you create if the Invoice's contract does not have payment terms defined. See the 'Service Contract Payment Terms' section below for more information on contract-specific payment terms.

 

Setting Service Contract Payment Terms
You can assign Payment Terms to individual service contracts you create for your customers.
  1. Open the 'Contract Rules' section on the Contract page you wish to update.
  2. Then select an option from the Payment Terms drop-down menu:
    ST-Office-Contract_Rules.png
  3. The payment terms that you select here will be automatically applied to any new Invoice that you create with this contract.
Example: if you offer 30-day terms to most of your customers (and therefore set your account's default payment terms to Net 30), but one particular customer negotiated 45-day terms with you, then you could edit that specific customer's contract and change the payment terms setting to Net 45. All Invoices created for this particular customer will now have 45-day terms applied, while all other customers will continue to receive Net 30 terms.

Setting Invoice Payment Terms and Due Dates

Whenever you create an Invoice, you may choose the payment terms that will be applied to it.

ST-Office-Invoice_Payment_Terms.png

By default, the Invoice will get its payment terms from the contract you used to create the Invoice (if that contract has payment terms) OR from your account's default payment terms (if the contract doesn't). However, you can change the payment terms on an Invoice-by-Invoice basis, if necessary.

The due date for each Invoice is calculated as:

Invoice transaction date + Payment terms number of days = Invoice due date

Example: if an Invoice's transaction date is October 3rd, and its payment terms are Net 15, then October 3rd + 15 days = a due date of October 18th.

For each invoice with payment terms defined, the due date will be calculated automatically; however, you can override the Invoice's due date without changing the payment terms, if necessary.

You can also search the Invoice list for all Invoices due in a given due date range:

ST-Office_Invoices_Filter_Due_Date.png

Example: you might search the Invoice list for all Invoices whose status is 'Sent' and whose due date is on or before yesterday (Due Date: To equals yesterday) to find all Invoices that have been emailed to your customers are now overdue.

 

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