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How to Manage Payment Terms & Discounts
How to Manage Payment Terms & Discounts

Managing Payment Terms & Discounts for Invoices and Sales

Brenda Beckham avatar
Written by Brenda Beckham
Updated over 5 months ago

Uphance allows you to define and manage your payment terms with your customers. You can define the payment term for each invoice as well as set defaults for your customers.  Uphance also allows you to customize, define and manage a number of payment terms.

Confirming a Sale

When confirming a sale, defining the payment terms is now a required field and must be done prior to confirming the sale and creating invoices.  

When confirming a Sale, you will see the "fix" notification as shown in yellow in Figure 1.  

To "fix" (or define) the payment terms, click the FIX link. Then, select the payment term from the drop-down list.

Orders Created Before Required Field

For Orders that were created before the payment terms field became a required field, a payment term must be added before new invoices can be created including balance invoices.  If the payment term is not set, you will receive an "error code 500" message when you attempt to create an Invoice on an existing order.

Add Payment Terms

To set your default payment terms or create multiple payment terms that can be used as a drop-down list for your invoices as illustrated in Figure 2:

  1. Navigate to Settings>Invoicing

  2. Click the plus icon at the top, right corner

  3. Type the data for your Payment Term in the appropriate fields

  4. Click the "Set as Default" checkbox if you want that to be the default for all new invoices where a payment term is not pre-defined for a specific customer.

  5. Click the "Create Payment Term" button

Deleting / Editing Payment Terms

To Delete a Payment Term, click the recycling bin at the end of the row of the Payment Term you want to remove.

To Edit a Payment Term, click the edit icon (pencil) at the end of the row of the Payment Term you want to edit.

Note that you cannot edit or delete payment terms that are not in use. Also, built-in payment terms can't be modified.

Early Payment / Settlement Discounts

When specified on an invoice, a settlement discount is a percentage discount given to the customer for prompt payment. For example, a 2% discount if the invoice is paid within 10 days. The terms under which the discount can be claimed are entirely up to you and should be included within the payment terms you enter. The prompt payment amount is indicated on the invoice in addition to the regular invoice total.

You can set this discount when creating a sales order like so:

If a selected payment term has an Early payment discount selected and the Payment was created before the due date, the Invoice will be indicated with "Mark settlement discount taken".  

If you need to remove the settlement discount from your invoice, select: "Unmark Settlement Discount Taken" on the invoice.

Invoice Due Date

There are two ways to adjust the payment dates for an order. One is by adjusting it via the invoice and the other via the Payment term.

To adjust via the Payment Term, follow the steps illustrated below

Customer Profiles

You can specify default Payment Terms for each of your customers within their profiles which will override the default settings on new invoices.  If the Payment Term is not specified within the customer profile, it will use the default you define as described earlier in this document.  See our Customer Setup & Profiles Knowledge Article for additional information.

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