---
schema_version: "1"
id: 09f5109d78b36771c6b2fe23099b5912c1788b356be2a829afcc93c4429bab1f
title: "Examples: 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_usecase.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_payment_terms_usecase.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: b9659d026be4440233de77cdd686775dcfce77e5eafe04e07723ebb831aead8c
description: Explore two examples that demonstrate how payment terms determine the payment due dates for invoices.
products:
  - Revenue Cloud
release: "264"
---
# Examples: Payment Terms

Explore two examples that demonstrate how payment terms determine the payment due dates for invoices.

### 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>

## Net 30 Payment Term

A software company provides a subscription service and wants to use the Net 30 payment term for its subscription service. The company's Salesforce admin creates a draft payment term and a related payment term item with these values:

- Type: Period-Based
- Period: 30
- Payment Timeframe: Standard
- Period Unit: Days

The admin then activates the payment term and assigns it to the relevant order. When invoices are posted for that order, the due date is calculated by adding 30 days to the invoice date. For example, if an invoice is posted on July 1, the due date is calculated by adding 30 days, making the payment due by July 31.

## Net 45 EOM Payment Term

A construction company completes a phase of a project and wants to use the Net 45 EOM payment term for the project. The company's Salesforce admin creates a draft payment term and a related payment term item with these values:

- Type: Derive End of Month and Add Period
- Period: 45
- Payment Timeframe: Standard
- Period Unit: Days

The admin then activates the payment term and assigns it to the relevant order. When invoices are posted for that order, the due date is calculated by adding 45 to the last day of the month in which the invoice is posted. For example, if an invoice is posted on April 15, the system first finds the last day of the month (April 30) and then adds 45 days. This makes the payment due by June 14.