Setup page · Accounts receivable
Terms of payment
A setup page for terms of payment, which define how payment due dates are calculated.
- Used by
- Accounts receivable clerk, Accounts receivable manager, Auditor and 10 more roles
- Business process
- Define customer payment processes in Dynamics 365 Finance
- Menu item
CustPaymTerm- Main table
PaymTerm- Data entity
CredManPaymTermRankEntity- Setup steps
- 1 on this page
Show what matters for
Everyone
1What it is and why
| What it is | A setup page for terms of payment, which define how payment due dates are calculated. |
|---|---|
| What you do here | Use it to create terms with a payment method (such as Net or COD), payment day, months or days, payment schedule and payment calendar handling for non-workdays. |
| Example | Net terms are used when the due date is always a set number of months or days after the invoice date, while COD is used when payment is required upon invoice. |
Functional consultant · Solution architect
2Where it fits
| Business process | Develop sales policies › Define accounts receivable strategy › Define customer payment processes in Dynamics 365 Finance |
|---|---|
| Menu path | Accounts receivable › Payments setup › Terms of payment |
| Set up first | Payment days Microsoft Learn ↗Payment schedules Microsoft Learn ↗Payment calendar Microsoft Learn ↗ |
| Used next by | Customers Microsoft Learn ↗Sales orders Microsoft Learn ↗Posting customer invoices Microsoft Learn ↗ |
| Related pages | Payment days Microsoft Learn ↗Payment schedules Microsoft Learn ↗Cash discounts Microsoft Learn ↗Terms of payment (Accounts payable) Microsoft Learn ↗ |
End user · Functional consultant
3How to do it
Step by step, with screenshots
Set up Terms of payment1 screen
Define the terms of payment assigned to sales orders, purchase orders, customers and vendors, which determine due dates.
Screen 1
Create the terms of payment
Go to Accounts receivable > Payments setup > Terms of payment
- Select New and enter the code and description
- On the Setup FastTab, set Payment method and Days
1Payment method Net 2Days 30 3Terms of payment NET30 Description Atlas net 30 days Months 0 
Show the full screen
page title tab to open what to set or check
Microsoft's steps
- Go to Accounts receivable > Payments setup > Terms of payment.
- Select New.
- In the Terms of payment field, enter an ID.
- In the Description field, enter a description.
- Select a Payment method, such as Net or COD.
- Select a Payment day, or enter a number of Months or Days, or add a Payment schedule.
- If you use a payment calendar, choose whether a due date that falls on a non-working day moves to the next or the previous working day.
- Select Save.
Source: Microsoft Learn ↗
Field guide
| Field | What it means | Worked example | Table column |
|---|---|---|---|
| Payment method | Sets the starting point for the due date calculation, for example Net for a set number of days after the invoice date, or COD when payment is due on invoice.Microsoft Learn ↗ | Net | — |
| Payment day | A set weekday or date in the month that is added to the due date calculation.Microsoft Learn ↗ | — | — |
| Months | The number of months to add when calculating the due date, depending on the terms.Microsoft Learn ↗ | 0 | — |
| Days | The number of days to add when calculating the due date, depending on the terms.Microsoft Learn ↗ | 30 | — |
| Payment schedule | An installment plan that can be added to the end of the payment method.Microsoft Learn ↗ | — | — |
| Cash payment | Must be set to No when the terms of payment is Cash.Microsoft Learn ↗ | — | — |
| Payment type | Set it to Credit card for terms that customers pay by credit card.Microsoft Learn ↗ | — | — |
| Terms of payment | — | NET30 | — |
| Description | — | Atlas net 30 days | Description |
Functional consultant
4Setup decisions
| Setup step | Recommended value and why | Decision · common mistake · test |
|---|---|---|
| Set up Terms of payment | — | — |
Solution architect
5Design impact
| Shared or per company | Per company: each legal entity has its own records. Microsoft data model ↗ |
|---|---|
| Can it be undone | — |
| Feature or country | — |
| If you change it later | Changing the terms on a single sales or purchase document does not change the default terms on the customer. Terms of payment are shared by Accounts receivable and Accounts payable. Microsoft Learn ↗ |
Technical architect
6Technical
| Menu item | CustPaymTerm Checked in Dynamics 365 |
|---|---|
| Form | PaymTerm Checked in Dynamics 365 |
| Table | PaymTermShown as “Terms of payment” in Record infoKey field: PaymTermIdChecked in Dynamics 365 |
| Data entities | CredManPaymTermRankEntityRanking of payment terms Microsoft data model ↗PaymentTermEntityTerms of payment Microsoft data model ↗ |
| Who can open it | PrivilegesMaintain customer terms of payment CustPaymTermMaintainView customer terms of payment CustPaymTermViewDutiesInquire into collections status CollectionLetterCollectionsStatusInquirInquire into collections policies CollectionLetterCollectPoliciesInquireInquire into invoice and cash policies CustInvoiceInvoiceAndCashPoliciesInquirEnable invoice and cash process CustInvoiceInvoiceAndCashProcessEnableInquire into invoice and cash policies RentalCustInvInvoiceAndCashPolInquirEnable invoice and cash process RentalCustInvoiceInvAndCashProcEnable13 security rolesAuditorAuditPolicyManagerCollections agent CollectionLetterCollectionsAgentCollections manager CollectionLetterCollectionsManagerAccounts receivable clerk CustInvoiceAccountsReceivableClerkAccounts receivable manager CustInvoiceAccountsReceivableManagerAccountant LedgerAccountantAccounting manager LedgerAccountingManagerAccounting supervisor LedgerAccountingSupervisorFinancial controller LedgerFinancialControllerAccounts receivable centralized payments clerk PaymAccountsReceivableCentralPaymClerkAccounts receivable payments clerk PaymAccountsReceivablePaymentsClerkRental coordinator agent RentalCoordinatorAgentRental manager RentalManager |
| Actions on the page | Options: Personalize, Page options, ShareChecked in Dynamics 365 |
Developer
7Developer
| Open it directly | https://<your-environment>/?mi=CustPaymTerm |
|---|---|
| Integrate with | CredManPaymTermRankEntity data entity Microsoft data model ↗ |
| Table definition | PaymTerm columns and relations Microsoft data model ↗ |
Everyone
8Sources and checks
- learn.microsoft.com/dynamics365/finance/general-ledger/tasks/establish-customer-payment-terms
- learn.microsoft.com/dynamics365/finance/accounts-receivable/accounts-receivables-set-up-overview
- learn.microsoft.com/dynamics365/finance/general-ledger/tasks/establish-customer-payment-terms
- learn.microsoft.com/common-data-model/schema/core/operationscommon/tables/finance/bank/group/paymterm
- learn.microsoft.com/dynamics365/finance/accounts-receivable/credit-card-authorizations
- learn.microsoft.com/training/modules/configure-accounts-receivable-dyn365-finance/2-payment-schedule
- Checked in a working Dynamics 365 system, version 10.0.49: the menu item, form, table and security, the page, the demo records and the values in the screenshots.