# Payment and Credit Terms ## Overview **Payment** and **Credit Terms** are the conditions that indicate when a payment is due. These are typically applied to invoices. **Payment Terms** are set on your [Vendors](https://help.sellercloud.com/omnichannel-ecommerce/vendors-overview/) and [Purchase Orders](https://descartessystems.aha.io/pages/7630848713094527310) and reflect the agreements between you and your vendors related to payment time-frames and discounts. Similarly, **Credit Terms** are set on your [Wholesale Customers](https://help.sellercloud.com/omnichannel-ecommerce/wholesale-customer-overview/) and reflect the agreement between you and the buyer regarding when a payment should be made. ## Manage Payment and Credit Terms You can access the **Payment and Credit Terms Settings** page from 3 different places in the UI, based on user permissions: 1. For Client Admins, go to **Settings** \> **Client Settings** \> **Payment/Credit Terms.** 2. For Employees (Purchase Order Permissions), go to **Purchasing** \> **Tools** \> **Payment/Credit Terms.** 3. For Employees (Orders Permissions), go to **Orders** \> **Tools** \> **Payment/Credit Terms.** On that page, you can create new Terms and edit or delete existing ones. To create new Terms: 1. Click on the **Plus** icon in the top right corner of the **Payment and Credit Terms panel**. 2. In the **Add New Payment and Credit Terms** dialog box, complete the required fields: - **Terms**\- A name for the term that will appear in the relevant drop-downs. - **Description**\- A brief description of the term. - **Days to Pay**\- The agreed-upon **period of time** in which a payment needs to be made. - **Days to Pay (Discount) -** The period of time in which a payment needs to be made to be eligible for a Discount (for advance payment). - **Discount -** The Discount amount that will apply if the payment is made within the agreed-upon time bracket. 3. Click **Save.** The Term will now be available to set as a Credit or Payment term on Customers or Vendors, respectively. To edit existing terms, go to the **Payment and Credit Terms** panel, navigate to the terms you want to change, and click the respective pencil icon. This will open a dialogue box where you can edit the Term details. To remove Terms that are no longer in use, click the item's bin icon. ## Vendors Payment Terms You can set the Payment Terms at the Vendor level. When creating a new PO, Payment Terms will be pulled from the related vendor, but you can still edit them manually in the PO creation wizard. 1. Go to **Purchasing** \> **Vendors** \> **Manage Vendors**. 2. Open the vendor you want to adjust the Payment Terms for. 3. In the upper right, click **Edit**. 4. Go to the **Payment** panel. 5. In the **Payment Terms** field, select the appropriate term. 6. Alternatively, click the plus icon to create a new Payment Term. Once created, the newly configured Term line will appear under the **Payments/Credit Terms** configuration. 7. **Save** the changes. ## Add Payment Terms to POs You can specify the Payment Terms when you create or edit a Purchase Order. If Payment Terms are set for the selected vendor, the **Payment Terms** field will be automatically populated. If you want to display the **Payment Terms** on the Purchase Order PDF form, enable the **Print Payment Terms on PO PDF** [Client Setting](https://descartessystems.aha.io/pages/7630835167106228692). 1. Go to **Purchasing** \> **Create New Purchase Order**. 2. In the General step of the PO creation wizard, select the existing Payment Terms. Alternatively, click the plus icon to create new Payment Terms. Once created, the newly configured Payment Terms line will appear under the **Payments/Credit Terms** configuration. 3. To specify or change the Payment Terms at the PO level, go to the PO's home page. 4. Select the appropriate **Payment Terms** on the **Billing & Payments** panel. 5. Save the changes. ## Wholesale Customers Credit Terms You can use the pre-configured **Credit Terms** for your wholesale customers to flag the orders that exceed the **Credit Terms**. If a customer has not completely paid off the **Credit Limit** before the **Credit Term** ends, you can review the list of **unpaid orders** for that customer by clicking the respective icon in the customer's **Orders** toolbar. Thus, you can prevent Orders from shipping. Enabling the **Allow to Create over Credit Limit WholeSale Orders** [Client Setting](https://descartessystems.aha.io/pages/7630845167106228692) will let you create orders for customers with overdue payments. To restrict this, disable this Client Setting. Follow the steps below to add specific **Credit Terms** for an individual customer. 1. Go to **Customers** \> **Manage Customers.** 2. Open the requested customer. Alternatively, [create a new customer](https://help.sellercloud.com/omnichannel-ecommerce/import-customer-accounts/). 3. In the upper right, click **Edit**. 4. On the customer's home page, refer to the **Wholesale Options** panel. This panel will not appear unless your customer is wholesale and the relevant **Wholesale Customer** option is selected. For details, refer to [Wholesale Customers](https://descartessystems.aha.io/pages/7630849732234296013). 5. In the **Credit Term** field, select the pre-configured **Payment Terms/Credit Terms** that reflect the period of time the credit is extended. 6. In the **Credit Limit** field, enter the amount of credit extended. 7. Click the **Billing Cycle Start Date** field, and select the date when the Credit Terms will start. 8. In the upper right, click **Save**. ## Relevant Client Settings The following client settings allow you to customize this workflow: 1. **Allow to create over Credit Limit WholeSale orders**\- when enabled, you will be able to create new orders for a Wholesale customer, even if they have exceeded their Credit limit. It also allows the creation of orders that exceed the overall customer credit limit. 2. **Print Payment Terms on PO PDF**\- when enabled, the Payment Terms will be included in the PDF, generated via the **Print to PDF** action from the Purchase Order Details page.