Customer Payment and Credit Terms

Sales or finance staff update a customer when credit is approved or a payment term or limit changes. Use the approved agreement or finance decision, then check how the terms appear on a new order.

Before you start

With Customers or Accounts Receivable Full Access, open the customer in the correct entity and choose Edit. Check Payment Terms, Credit Limit, Status, and Default Currency. A Firm Admin maintains the company terms list under Settings > Setup > Company > Payment Terms; the customer form also offers Add.

Update and check the terms

1. Confirm the payment period, credit amount, currency, and decision with finance or the account owner.
2. Select Payment Terms, enter Credit Limit, and confirm status and currency.
3. Save, reopen the customer, and check the summary.
4. Open a new sales order for the customer and check its required Payment Terms against the agreement. Coordinate any exception through your approval process.

How the credit limit works

• A credit exception is checked for a non-draft order only when Enforce Credit Limit On New Sales Order is enabled for the entity.
• Zero means no limit. A blank saved limit also becomes zero.

Existing orders and invoices

Existing sales orders keep the terms copied when created, and invoices from those orders use the order's terms. A standalone invoice uses the customer's current terms. Review each document before promising that an earlier transaction will change.

If you don't see what you expect

• Term missing: Check the company terms list before creating a similar one.
• Status differs: The edit form shows Active or Inactive; the summary may show On hold for inactive status.