How to Add a New Term to QuickBooks

By Benjamin Aries

Business managers can add payment terms with QuickBooks.
i Jupiterimages/Brand X Pictures/Getty Images

A payment term is a business expression that indicates when a customer payment is due. Many businesses use common payment terms, such as "2% 10 Net 30." This indicates that a 2 percent discount is offered if a customer pays within 10 days, while all customers are required to pay within 30 days. The QuickBooks accounting software allows users to add new terms to customize the billing process and saves custom payment terms for future use.

Click the menu marked "Lists." Select "Customer and Vendor Profile Lists," and then choose "Terms List."

Click the "Terms" button, which is located at the bottom of the list. Click "New." Type a label for the new term in the "Terms" field. This label appears on the list and identifies the term for future use.

Choose which type of terms to use. Select "Standard" to apply the payment terms several days into the future, such as 10 days. Choose "Date-driven" to set the term to a specific date, such as the 15th of the month.

Fill in the details you would like to use for the new term. Complete the "Net Due" field to indicate the length of time before a full payment is due.

Set the "Due the Next Month If" field to roll over payments to the next month. Enter the "Discount Percentage" or "Discount if Paid" fields to apply a discount for customers who pay on time.

Click "Next" to save the new term and create another as well, or click "OK" to save the term and close the window.