Payment Terms Template
Overview
Payment Terms Template — Business Overview
The Payment Terms Template is used in Dafater to standardize and control how customers are expected to pay for goods or services. It defines the agreed payment structure—such as immediate payment, payment after a certain number of days, or staged payments—so that invoices and sales documents follow consistent and approved terms.
By using the Payment Terms Template, businesses ensure clarity, consistency, and professionalism in all customer payment agreements.
Purpose in Business Operations
The Payment Terms Template helps businesses:
- Clearly communicate payment expectations to customers
- Reduce disputes related to due dates or payment timing
- Maintain consistent credit and collection practices
- Improve cash flow planning and forecasting
Once defined, these templates can be reused across multiple customers and transactions, saving time and avoiding errors.
Prerequisites and Setup Requirements
Before using the Payment Terms Template, the business should: - Define its standard payment policies (e.g., advance payment, net 15, net 30) - Align finance and sales teams on acceptable payment timelines - Ensure customer agreements and contracts reflect these payment expectations
No transaction should rely on informal or undocumented payment terms once templates are in place.
Typical Workflow and Business Fit
Define Payment Structure
The finance team creates a Payment Terms Template that reflects the business’s payment policy.Assign to Transactions
The template is selected when creating sales documents such as quotations, sales orders, or invoices.Customer Communication
Payment terms appear clearly on customer-facing documents, setting expectations upfront.Payment Follow-up
Due dates generated from the template guide reminders, collections, and cash flow tracking.
This workflow ensures that payment terms are consistent from the first quote through final payment.
Key Business Scenarios Where It Is Essential
B2B sales with credit periods
When customers are allowed to pay after delivery or invoicing.Large or high-value transactions
Where staged or milestone-based payments are required.Standardizing customer agreements
When managing multiple customers with similar payment arrangements.Improving cash flow discipline
By enforcing approved and realistic payment timelines.
Important Considerations for Users
- Choose payment terms that balance customer convenience with business cash flow needs.
- Avoid creating too many similar templates, which can cause confusion.
- Ensure sales teams consistently apply the correct Payment Terms Template.
- Review templates periodically to reflect changes in business policy or market conditions.
In summary, the Payment Terms Template is a foundational business tool in Dafater that ensures payment expectations are clear, consistent, and aligned with the company’s financial strategy.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| template_name | Template Name | Data | - | Name identifying this payment terms template in Dafater | |
| allocatepaymentbasedonpayment_terms | Allocate Payment Based On Payment Terms | Check | - | Automatically allocate received payments according to defined payment terms | |
| terms | Payment Terms | Table | ✓ | Payment Terms Template Detail | List of payment terms and schedules applied in this template |
Child Tables
Payment Terms (Payment Terms Template Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| payment_term | Payment Term | Link | Payment Term | Linked payment term defining schedule within Dafater. | |
| description | Description | Small Text | - | Additional explanation of this payment term detail. | |
| invoice_portion | Invoice Portion (%) | Float | ✓ | - | Percentage of invoice amount due under this term. |
| modeofpayment | Mode of Payment | Link | Mode of Payment | Preferred payment method for this installment in Dafater. | |
| duedatebased_on | Due Date Based On | Select | ✓ | Day(s) after invoice date, Day(s) after the end... | Basis used to calculate due date for payment. |
| credit_days | Credit Days | Int | - | Number of days allowed before payment becomes due. | |
| credit_months | Credit Months | Int | - | Number of months allowed before payment becomes due. | |
| discount_type | Discount Type | Select | Percentage, Amount | Specifies whether discount is percentage or fixed amount. | |
| discount | Discount | Float | - | Discount value applicable when paid within validity period. | |
| discountvaliditybased_on | Discount Validity Based On | Select | Day(s) after invoice date, Day(s) after the end... | Basis used to calculate discount eligibility period. | |
| discount_validity | Discount Validity | Int | - | Duration for which early payment discount remains valid. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Accounts Manager | ✓ | ✓ | ✓ | ✓ | ||
| System Manager | ✓ | ✓ | ✓ | ✓ | ||
| All | ||||||
| Accounts User | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Company | Linked from | Setup |
| Customer | Linked from | Selling |
| Customer Group | Linked from | Setup |
| POS Invoice | Linked from | Accounts |
| Process Statement Of Accounts | Linked from | Accounts |
| Purchase Invoice | Linked from | Accounts |
| Purchase Order | Linked from | Buying |
| Quotation | Linked from | Selling |
| Sales Invoice | Linked from | Accounts |
| Sales Order | Linked from | Selling |
| Supplier | Linked from | Buying |
| Supplier Group | Linked from | Setup |
| Supplier Quotation | Linked from | Buying |