---
schema_version: "1"
id: 2635fa2f7bdec89aef99718111369b804a3b595f97dd4778e5191d019654ad44
title: Create Payment Terms
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_payment_terms.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_payment_terms.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: de5dab394662ca5b8762ca1376fa75adcde5990b3713a089968d1f8f58b0e28c
description: Negotiate and define payment terms to set a due date for payments and collect payments in a timely manner. You can anticipate or enforce the date by when payments for outstanding invoices must be paid.
products:
  - Revenue Cloud
release: "264"
---
# Create Payment Terms

Negotiate and define payment terms to set a due date for payments and collect payments in a timely manner. You can anticipate or enforce the date by when payments for outstanding invoices must be paid.

### Required Editions

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small edition"><colgroup><col></colgroup><tbody><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: Lightning Experience</td></tr><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: <strong>Enterprise</strong>, <strong>Unlimited</strong>, and <strong>Developer</strong> Editions with <a href="https://help.salesforce.com/s/articleView?id=ind.revenue_licenses_areas_and_features.htm&amp;release=264.0.0&amp;type=5">the Revenue Cloud Advanced license or the Revenue Cloud Billing license</a></td></tr></tbody></table>

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small permission">
        <colgroup>
          <col style="width:50%">
          <col style="width:50%">
        </colgroup>
        <thead class="slds-text-title_caps ">
          <tr class="">
            <th scope="colgroup" class="slds-cell-wrap" colspan="2" style="text-align:center;vertical-align:top;" id="d128580e72">User Permissions
              Needed</th>
          </tr>
        </thead>
        <tbody>
          <tr class="">
            <td data-label="User Permissions Needed" class="slds-cell-wrap" style="vertical-align:top;" headers="d128580e72 ">To create payment terms and payment term items:</td>

            <td class="slds-cell-wrap" style="vertical-align:top;" headers="d128580e72 ">Billing Admin permission set</td>

          </tr>
        </tbody>
      </table>

- **[Examples: Payment Terms](https://help.salesforce.com/s/articleView?id=ind.billing_payment_terms_usecase.htm&release=264.0.0&type=5)**  
    Explore two examples that demonstrate how payment terms determine the payment due dates for invoices.

## Create Payment Terms

A payment term is a formal agreement that defines the date by which an invoice must be paid.

1. From the App Launcher, find and select **Payment Terms**.
2. Click **New**.
3. Enter a name for the payment term.
4. Select a status.
    
    When you create payment terms, you can select the status as either Draft or Inactive. If you select the status as Inactive, you can't change it to Draft.
    
    You can't select the status as Active without creating a related payment term item.
5. To make this the default payment term for your Salesforce org, select **Default**.
6. If necessary, enter a description.
7. Save your changes.

After you create a payment term, create a corresponding payment term item.

## Create Payment Term Items

Payment term items define the specific configuration for payment terms.

1. From the App Launcher, find and select **Payment Terms**.
2. Open the Payment Term record for which you want to create an item.
3. On the Payment Term Items related list, click **New**.
4. Select a type for the payment term item.
    - To calculate the invoice due date by adding the period to the invoice date, select **Period-Based**.
    - To calculate the invoice due date by adding the period to the last day of the month in which the invoice date falls, select **Derive End of Month and Add Period**.
5. Enter the period.
    
    When the type of the payment term item is Derive End of Month and Add Period, to set the due date as the last day of the month in which the invoice is posted, enter 0 as the period.
6. To indicate that the payment term is for a standard payment, select **Standard** as the payment timeframe.
    
    Each payment term can have only one payment term item with a Standard payment timeframe.
7. If you have entered a period, select the unit of measurement for the period.
8. If necessary, enter a description.
9. Save your changes.

After you create the payment term item, complete these steps:

- Change the status of the payment term to Active. Only active payment terms can be used to determine the due dates of invoices.
- Go to the Order records and specify the relevant payment term.

![Note](https://sf-zdocs-cdn-prod.zoominsoftware.com/tdta-ind-revenue-264-0-0-production-enus/91ca99c6-d5c8-4986-b961-c6b7801e0d0d/images/icon_note.png)

Note If you don't specify payment terms for orders, the default payment term for your Salesforce org is used.

The same payment terms are autopopulated for the billing schedules that are generated for these orders, and eventually used to determine the due dates of the invoices.