Zikpro - Payment Term Template
A Payment Terms Template assists in bundling several payment terms and automatically having them included in transactions. It makes it easy to define the payment schedule when working with customers or suppliers.
Once a template is established, it may be associated with a given Customer or Supplier. When such a customer or supplier is chosen in a transaction, the template is automatically applied, ensuring consistent payment terms.
Example:
If you pay in phases, such as 30-70, you can set up individual Payment Terms for each phase (30% and 70%) and merge them into a single template. You can use this template effectively in both sales and purchase transactions.
1. How to Create a Payment Terms Template
A Payment Terms Template helps ERPNext to automatically populate the Payment Terms Schedule field in sales or purchase documents. This is a useful feature if you have pre-defined payment schedules or want to simplify transactions.
First, simply enter a name for your plan. As in your case, you named it June Payment Template. It makes you identify the schedule later on.
If you intend to divide the payment (such as half now, half later), then check the box which states "Allocate Payment Based On Payment Terms". Otherwise, leave it unchecked and the amount will still be payable as usual.
You don't have to touch the No. column — it simply indicates the order (1st term, 2nd term, etc.).
Now in Payment Term, simply write what each one is named. For instance:
4.1. First one: Advance (i.e., pay some portion upfront before work begins).
4.2. Second one: Net 30 (i.e., pay the balance after 30 days).
If you wish, you can include a description for each. Like so:
5.1. "50% upfront before starting."
5.2. "Remaining 50% after a month."
Then in Invoice Portion (%), enter how much of the whole amount should be paid in each stage. For instance: 50 in both lines indicates 50% now and 50% afterwards.
In the subsequent column, choose "Day(s) after invoice date" — this simply informs ERPNext the way to calculate the due date.
Then enter the number of days the buyer has to pay:
8.1. For Advance, enter 0 (means due immediately).
8.2. For Net 30, enter 30 (due date after 30 days).
If you must include another step, such as "Final Payment" after delivery, just click Add Row.
Once you're finished filling everything, just click Save at the top.
2. Day(s) following the invoice date
It means the payment is due a few days after the date written on the invoice. You choose how many days — like 7, 15, or 30. ERPNext will add those days to the invoice date to set the due date.
Example:
Let’s say you made an invoice on 1st January. You selected 30 days. Now ERPNext will count 30 days from 1st Jan → and the due date becomes 31st January.
That’s it! The customer has 30 full days to pay you.
3. Day(s) following the invoice month end
It meas the payment will be due a few days from the end of the month in which the invoice was issued.
Example:
Suppose your invoice date is 10th Jan.
You set 15 days.
Now ERPNext will:
Wait for Jan to end → that's 31st Jan.
Then count 15 days from there.
That gives you a due date of 15th Feb.
Although you prepared the invoice on 10th Jan, the client has until 15th Feb to make the payment.
4. Month(s) after the end of the invoice month
It means the payment will be due after a couple of full months, from the last of the invoice month.
Example:
Suppose you created an invoice on 5th January.
You select 2 months.
Now ERPNext will:
First wait for January to complete → that's 31st Jan
Then add 2 full months →
February
March
So the due date is 31st March.
Although you created the invoice on 5th Jan, the customer can pay till the end of March.
5. Prerequisites
Before you set up a Payment Terms Template, ensure that you have already configured the Payment Terms.