Payment Terms define how the user will pay to the Vendors and how the Customers will pay to the user in Free Accounting. Payment Terms are used to determine
how account payables and receivables will be aged. Default Payment Terms in Free Accounting are set on the Customer and Vendor records.
Free Accounting keeps both Customer and Vendor payment terms in the same list, so the terms you need are all available whether you are
creating an invoice or a purchase order.
To view the Terms List select Lists / Person Profile Lists / Terms List from the Free Accounting Main Menu or press either 
or  on the Commands Panel and select  Terms in the Navigation Pane.
Take the following steps to create new terms into the Free Accounting application:
- Select Lists / Person Profile Lists / Terms List from the Free Accounting Main Menu.
- Right click in the Preview Pane and select Add.
- Enter the required information into the fields. After saving, this information can be edited by right clicking in the Preview Pane and
selecting Edit or just by double clicking on the line. Check / uncheck the Active check box to make the current entry active / inactive in the list.
- Press the Ok button to save the changes.
Terms - This is a description of the terms.
Days To Pay - This is a number of days within which the bill is to be paid.
Early - Use this section only if there is a benefit for paying early.
Type - Select the type of the terms: either Discount or Credit.
Discount - This is a percentage of the bill that is subtracted from the bill if it is paid earlier.
Credit - This is a dollar amount that is subtracted from the bill if it is paid earlier.
Early Days To Pay - This is a number of days within which the bill can be paid and is still considered as an early payment.
Late - Use this section if there is a penalty for paying late.
Type - Select the type of the terms: either Charge or Fee.
Charge - This is a percentage of the bill that is added to the bill if it is paid late.
Fee - This is a dollar amount that is added to the bill if it is paid late.
Late Days To Pay - This is a number of days from the invoice date, that the late charge or fee takes effect from.
See the Free Accounting Right click function window for more information about the right click function.
Use Search function to find the required record.
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