---
title: Payment Terms Setup
description: Define the payment terms available for clients and invoices.
url: "https://theasst.com/docs/payment-terms-setup/"
updated: "2026-10-06"
category: Setup / Sales Setup
---

# Payment Terms Setup

Payment Terms defines the terms available on clients, invoices, and bills -- e.g. Net 10, Net 30 -- including any early-payment discount or late interest.

![Payment Terms list with Net 10 and Net 30, showing Pmt type, Cash, Discount, Days+Mos, From, Interest columns](https://theasst.com/wp-content/uploads/2026/09/pmttermslist.webp)

Click **Add new** to create a term: its type, whether it's cash-only, an optional early-payment discount and window, and an optional late-payment interest rate and grace period.

## The Terms List

Columns: **Name**, **Pmt type**, **Cash?**, **Discount** and its **Days+Mos**, **From** (what the days count from), and **Interest** with its **Days+Mos**. Click a term to edit it, or **Add new**.

## Fields

- **Payment terms name** — what you will see in dropdowns, such as “Net 30” or “2/10 Net 30”.
- **Type** — *Open* (normal credit terms), *C.O.D.*, *Prepaid*, or *Credit card*.
- **Cash only?** — Yes if the term requires immediate payment.
- **Dating type** — what the due date counts from: *Number of days from invoice date*, *Number of days from end of month (EOM)*, or *Number of days from date received*.
- **Cut-off day** — for EOM terms, the last day of the month still included in the current pay cycle.
- **Number of days** and **plus additional months** (extra dating) — how long until it is due.
- **Discount if paid timely** — an early-payment discount percent, and how many days it stays available.
- **Interest** — a late-payment interest percent per month, beginning a number of days and months after the due date.

Terms are chosen on the [client](https://theasst.com/docs/client-details/), [vendor](https://theasst.com/docs/vendors/), [invoice](https://theasst.com/docs/invoices/), [bill](https://theasst.com/docs/bills/), and [purchase order](https://theasst.com/docs/purchase-orders/), and set each document’s due date. Use **Delete** to remove a term.