How to show payment terms in Quickbooks

In QuickBooks, the “Terms” field is used to define the payment due date for a transaction. You can assign terms like:

• Net 15, Net 30, Net 60 (payment due in 15, 30, or 60 days)
• Due on receipt
• Custom terms (e.g., 2% 10 Net 30 for early payment discounts)

These terms can be applied to both sales transactions (invoices) and purchase transactions (bills). QuickBooks lets you manage how and where the “Terms” field appears depending on your version and settings.

QuickBooks Online

Step 1: Enable Terms in Settings

1. Log in to QuickBooks Online.
2. Click the gear icon (⚙️) in the top-right corner.
3. Under “Your Company”, choose Account and Settings.
4. Click the Sales tab from the left sidebar.
5. Find the Sales form content section.
6. Click ✎ Edit on that section.
7. Make sure the “Terms” checkbox is checked to show it on invoices.
8. Click Save, then Done to exit settings.

You’ve now enabled the “Terms” field for your sales forms (invoices and estimates).

Step 2: Assign Default Terms to Customers

1. Click Sales > Customers from the left panel.
2. Select a customer from the list.
3. Click Edit in the top right of the customer profile.
4. In the Payment and Billing section, choose a default term from the “Terms” dropdown.
5. Click Save.

This ensures any invoice you create for this customer will default to the selected term.

Step 3: Show or Change Terms on an Invoice

1. Go to + New > Invoice.
2. Under the Customer name, you’ll see the Terms field.
3. Use the dropdown to choose the appropriate term or create a new one (see next step).
4. Fill out the rest of the invoice and send/save.

Step 4: Add or Edit Payment Terms

1. Click the gear icon (⚙️) > All Lists.
2. Choose Terms.
3. Click New to add a new term or click Edit next to an existing one.
4. Choose between:
   • Standard: e.g., Net 15, Net 30
   • Due by certain day of the month
5. Save your changes.

Now your custom term will be available in all relevant dropdowns.

Step 5: Show Terms on Purchase Transactions (Bills)

1. Go to + New > Bill.
2. Under the Vendor name, the Terms field will appear.
3. Select or edit the term from the dropdown.
4. Continue entering the bill as usual.

You can also set default terms for vendors via Expenses > Vendors and editing the vendor profile.

QuickBooks Desktop

QuickBooks Desktop also allows full control of terms for both sales and expense forms.

Step 1: Ensure Terms Are Turned On in Preferences

1. Open QuickBooks Desktop.
2. Go to Edit > Preferences.
3. Click Sales & Customers (or Bills & Expenses for bills).
4. Choose the Company Preferences tab.
5. Ensure options related to “payment terms” are enabled.
6. Click OK.

Step 2: Create or Edit Terms

1. Go to Lists > Customer & Vendor Profile Lists > Terms List.
2. To create a new term:
   • Click Terms > New.
   • Choose Standard or Date Driven.
     • Standard: e.g., Net 30 (due 30 days after invoice)
     • Date Driven: e.g., due on the 15th of next month
3. Enter the term name, net due days, or discount details.
4. Click OK.
   ​​

Step 3: Set Default Terms for Customers/Vendors

1. Go to Customer Center or Vendor Center.
2. Double-click the customer/vendor name.
3. On the Payment Settings tab (for customers), or Additional Info tab (for vendors), select a default term from the dropdown.
4. Click OK.

Step 4: Use Terms on Invoices and Bills

For Invoices:

1. Go to Customers > Create Invoices.
2. Choose a customer.
3. The Terms field auto-populates based on the customer’s default.
4. You can manually change the terms using the dropdown.
5. Finish and save the invoice.

For Bills:

1. Go to Vendors > Enter Bills.
2. Select the vendor.
3. Choose the appropriate term from the Terms dropdown.
4. Save the bill.

Step 5: Show Terms on Printed Forms

To ensure the “Terms” field appears on printed invoices:

1. Go to Lists > Templates.
2. Select your invoice template > click Additional Customization.
3. Under the Header tab:
   • Check the box for Terms under both “Screen” and “Print” columns.
4. Click OK to save.