Payment terms state when and how a buyer must pay a seller. They may specify a due date, credit period, deposit, instalments, accepted payment method, currency, early-payment discount, late charges, and responsibility for transfer or bank fees.
Quick reference for Payment terms
| Check | What it means for the transaction |
|---|---|
| Category | Orders, invoicing, accounts payable and accounts receivable |
| Record to keep | Link the order, delivery evidence, invoice, approval, adjustment and payment reference that belong to the same transaction. |
| Do not infer | An approved invoice or recorded payment does not by itself prove that funds have settled or that the open balance is reconciled. |
Payment terms and nearby terms
- Invoice: An invoice is a document a seller issues to request payment for supplied goods or services.
