# How to: Set Up Payment Terms

For each payment term, you can specify if the payment can be made in installments. For example, you can define that a payment can be made in three installments with a third of the payment due after 30, 60, and 90 days.

If a payment term must be paid in one installment, you must still specify how the due date will be calculated.

## To set up payment terms

In the

**Search**box, enter**Payment Terms**, and then choose the related link.Fill in the fields as described in the following table.

Field Description **Code**Specify the unique identification code for the set of payment terms. You can enter a maximum of 10 alphanumeric characters.

**Payment Nos.**Specify the number of installments allowed for this payment term.

**Description**Specify the payment term code description. This description is printed where the payment terms are used.

On the

**Home**tab, in the**Process**, choose**Calculation**.In the

**Payment Terms Lines**window, fill in the fields as described in the following table.Field Description **Payment %**Specify the percentage of the total payment that this installment is for.

For example, if the payment must be made in one installment, specify

**100**.**Due Date Calculation**Specify the formula that is used to calculate the date that a payment must be made.

For example, if the payment must be made in one installment after two weeks, specify

**14D**. For more information, see How to: Enter Dates and Times.**Discount Date Calculation**Specify the formula that is used to calculate the date that a payment must be made in order to obtain a discount.

**Discount %**Specify the discount percentage that is applied for early payment of an invoice amount.

Choose the

**OK**button.The

**Payment Nos.**field in the**Payment Terms**window is updated. The payment terms that you set here will be a reference for automatic due date calculation for documents that you post for relevant customers and vendors.

## See Also

#### Tasks

How to: Set Up Automatic Payments and Automatic Bills