What Are Payment Terms?
Payment terms are predefined rules that specify when invoices or bills are due. With Buildern, you can define various types of payment terms to suit your business needs. These terms ensure clarity and consistency, saving time and reducing manual errors.
Creating Payment Terms
To create or manage payment terms:
Go to Company Settings.
Select Field Settings.
Open Invoice and Bill Payment Terms.
Buildern includes several predefined payment terms to help you get started. You can edit these or create your own.
To create a new payment term:
Click Add New Option.
Enter a descriptive name.
Select how the due date should be calculated.
Provide a descriptive name for the payment term and choose the payment due option that best suits your workflow:
In X days: The payment is due X days after the invoice or bill is issued. (Example: If you set the term to "In 20 days" and the invoice is issued on January 1st, the payment will be due on January 21st.)
X day of the current month: Define a specific day of the current month with conditions:
If the invoice or bill is issued within X days of the current month, it’s due on the specified day of the next month. (Example: if you set "5 days" as the condition and the payment is due on the 20th, an invoice issued on January 4th will have a due date of January 20th.)
If issued later, the payment is automatically moved to the following month. (Example: Using the same example, if the invoice is issued on January 17th, it will be due on February 20th.
X day of the next month: Define a specific day of the next month for payment. (Example: If the payment term is set to "5th day of the next month" and the invoice is issued on January 10th, the payment will be due on February 5th.)
💡Tip - Set a default term for the bills and invoices, so Buildern uses them when creating corresponding documents.
If you would like to deactivate a payment term so you can reuse it later, simply uncheck the Active checkbox.
If you would like to remove it permanently, click the X next to the payment term to delete it.
How to Create Default Payment Terms for Sub/Vendors
While working with subcontractors and vendors, Buildern allows you to set specific payment terms for various partners.
First, go to Contacts > Sub/Vendors.
You’ll need to edit their information and define the payment term in a dedicated section, as shown below. Choose an option that best suits your collaboration with them and Save the changes.
Applying Payment Terms
After creating payment terms, you can apply them to invoices and bills. Let’s see how this works.
Creating an Invoice with Payment Terms
The process is pretty straightforward. You’ll need to create an invoice and choose the pre-created payment term when setting the due date for it.
Once you choose the payment term that best suits the current invoice, Buildern will automatically calculate the due date based on the invoice date and the pre-added terms.
Creating a Bill with Payment Terms
The process is nearly the same for bills.
You go to the bills section, create or edit an existing bill, and set the due date based on the payment term.
Here’s how it looks in Buildern:
Happy Building!