Use this area to define payment offsets for contractors and invoice due dates for clients to ensure accurate financial processing across pay and bill cycles.

Configure Payment Terms

Payment terms determine when contractors (service suppliers) are paid. These terms can be assigned to a contractor via the Payment Terms field on the Payee Entry screen or through the pay company’s default settings.

Create Payment Terms

Go to Maintenance, then click Global.
Go to Pay/Bill Payment Terms Maintenance, then click New to create a payment term.
Enter a Name to identify the payment terms in selection lists.
Select the Payroll Country the terms apply to.
Choose the From Date Type to set the reference point for calculating the payment offset.
Enter the Number of Days Offset that defines when a contractor’s payment is due relative to the selected date type.
Click Save to store the configuration.

📌 Note: The payment terms you configure here become available to assign within Payee Entry and Pay Company Defaults.

From Date Type Options

The From Date Type determines the reference point used to calculate when contractor payments are due.

From Date Type Option	Description	Example
Pay Period End Date	Offsets payment by a set number of days from the pay period end date.	A pay period ending 12/02/2022 with a 28-day offset results in payment due on 12/03/2022.
End of the Following Month from Pay Period End Date	Offsets payment from the end of the month following the pay period end date.	A pay period ending 12/02/2022 with a 0-day offset results in payment due on 31/03/2022.
Day of the Month Following Period End Date	Applies a specific day of the following month as the due date.	A pay period ending 12/02/2022 with a 20-day offset results in payment due on 20/03/2022.
Pay Period Pay Date (UK Only)	Offsets payment from the normal pay date of the pay period.	A pay period with a 16/02/2022 pay date and a 28-day offset results in payment due on 16/03/2022.

📌 Note:

For countries other than the United Kingdom, a timesheet is included in a pay batch if its payment terms due date falls within the pay period start and end dates.
For the United Kingdom, a timesheet is included in a pay batch if its payment terms due date falls on or before the pay period’s normal pay date.

Configure Billing Terms

Billing terms (or invoice terms) define when invoices and credit notes are due for payment. They appear on issued documents and inform debtors of their payment obligations.

Create Billing Terms

Go to Maintenance, then click Global.
Go to Pay/Bill Payment Terms Maintenance and click New Billing Term.
Enter a Name and select the Country the term applies to.
Choose the Invoice/Credit Note Type.
Define the Due Date Rule based on either:
- The Invoice/Credit Note Issue Date, or
- The End of the Month in which it was issued.
Enter the Number of Days Until Due according to business requirements.
Set a Start Date and, if applicable, an End Date for the term’s validity.
Click Save to activate the billing term.

📌 Note: Billing terms are country-specific. If you need the same terms for multiple countries, create identical records for each.

⚠️ Important: At least one billing term must exist before invoices or credit notes can be created.

💡 Best Practices

Review and update payment and billing terms annually to ensure compliance with local regulations.
Use consistent naming conventions for payment and billing terms to simplify selection during setup.
Test new terms in a sandbox environment before applying them to live transactions.
Ensure billing terms are set before creating debtor records to avoid validation errors.

🤔 FAQs

Q1: Can I change a payment term after it’s been assigned to a contractor?

Answer: Yes. You can update the contractor’s Payment Terms field in Payee Entry, but ensure pending payments are not affected by overlapping offsets.