> ## Documentation Index
> Fetch the complete documentation index at: https://docs.qwoty.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Payment terms

> Define single or multi-installment payment plans that customers see on every quote.

Payment terms define how and when customers pay. A payment term can be as simple as `Net 30` or as complex as a 4-installment plan with different deadlines and custom delivery-linked dates. Once created, payment terms are linked to quote templates so sales reps pick the right plan at quote creation.

<Note>
  You must have the **Admin** role to create, edit, or delete payment terms.
</Note>

## What payment terms control

Each payment term defines:

* **A name and reference** — how the term appears in quotes and integrations
* **One or more installments** — each with its own percentage and deadline
* **A total percentage** — which must equal 100%
* **External identifiers** — to sync with CRM, ERP, or accounting systems
* **A status** — Active (available on quotes) or Inactive (hidden from new quotes)

Payment terms flow through the quote-to-revenue cycle: they appear on the quote, the published Dealroom, the contract, and the order.

## Access the payment terms screen

<Steps>
  <Step title="Open Settings">
    In the left sidebar, click **Settings**.
  </Step>

  <Step title="Navigate to Payment terms">
    Under the **Workspace** section, click **Payment terms**. You'll see the list of all configured terms with their name, API name, and status.
  </Step>
</Steps>

<Tip>
  Use the search bar at the top of the list to filter terms by name. Adjust **Rows per page** at the bottom of the table to browse larger lists.
</Tip>

## Single-installment vs multi-installment terms

Qwoty supports two kinds of payment terms:

* **Single installment** — the customer pays 100% of the quote total in one go, at a specific deadline (for example, `Net 30`)
* **Multi-installment** — the customer pays in multiple scheduled portions, each with its own percentage and deadline (for example, a 4×25% plan over 4 months)

Both are created through the same form — you simply add one installment row for a single payment, or several rows for a split plan.

## Available deadline options

When you configure an installment, the **Term** dropdown offers 14 preset options that cover the most common billing practices:

| Option                          | When payment is due                            |
| ------------------------------- | ---------------------------------------------- |
| **Due immediately**             | At the moment the quote is accepted            |
| **Due on receipt**              | When the customer receives the invoice         |
| **Net 15**                      | 15 days after the invoice date                 |
| **Net 30**                      | 30 days after the invoice date                 |
| **Net 45**                      | 45 days after the invoice date                 |
| **Net 60**                      | 60 days after the invoice date                 |
| **Net 90**                      | 90 days after the invoice date                 |
| **Net 120**                     | 120 days after the invoice date                |
| **30 days end of month**        | 30 days from the last day of the invoice month |
| **45 days end of month**        | 45 days from the last day of the invoice month |
| **60 days end of month**        | 60 days from the last day of the invoice month |
| **Upon purchase order receipt** | When the customer's PO is received             |
| **Custom**                      | A deadline you describe yourself in free text  |

<Info>
  Picking **Custom** adds a **Custom Text** field next to the term, where you write the deadline in plain language — for example, `2 days before delivery`, `15 days after delivery`, or `on January 15, 2027`.
</Info>

## Create a payment term

<Steps>
  <Step title="Open the payment term form">
    From the Payment terms list, click **+ New payment term** at the top right of the screen.
  </Step>

  <Step title="Fill in General Information">
    * **Name** (required) — the label shown to sales reps and customers, for example `Net 30` or `4X`
    * **Reference** (optional) — a short internal reference, for example `4X`

    <Tip>
      Use a naming convention that works for sales reps browsing the dropdown. `Net 30` is clearer than `Standard 30d`.
    </Tip>
  </Step>

  <Step title="Configure the first installment">
    Each installment row has three (or four) fields:

    * **Percentage** (required) — the portion of the quote total due at this deadline (for example, `25` for 25%)
    * **Term** (required) — the deadline, picked from the dropdown
    * **Custom Text** (only shown when Term is `Custom`) — free text describing the deadline

    For a single-payment term like `Net 30`, enter **100** as the percentage and pick `Net 30`.
  </Step>

  <Step title="Add more installments if needed">
    Click **+ Add installment** to add another row. Configure its percentage, term, and optional custom text. You can delete any row with the red trash icon on the right.

    <Info>
      The **Total Percentage** field below the list updates automatically as you add or edit installments. It must reach exactly **100.00%** before you can save.
    </Info>
  </Step>

  <Step title="Add Identifiers (optional)">
    If you sync Qwoty with other systems, enter the matching IDs:

    * **CRM ID** — identifier in your CRM
    * **ERP ID** — identifier in your ERP
    * **Accounting ID** — identifier in your accounting tool
  </Step>

  <Step title="Set status and API name">
    In the right panel:

    * **Status** — set to `Active` to make the term available on quotes, or `Inactive` to hide it
    * **API Name** — technical identifier used in integrations (for example, `4x`)
  </Step>

  <Step title="Save">
    Click **Save** in the top right. The new term appears in the Payment terms list and becomes available on quote templates.
  </Step>
</Steps>

## Example: a 4×25% installment plan

Here's what a typical multi-installment payment term looks like — a 4-installment plan tied to delivery events:

| Installment | Percentage | Term           | Custom Text              |
| ----------- | ---------- | -------------- | ------------------------ |
| 1           | 25%        | Due on receipt | —                        |
| 2           | 25%        | Net 45         | —                        |
| 3           | 25%        | Custom         | `2 days before delivery` |
| 4           | 25%        | Custom         | `15 days after delivery` |

**Total percentage:** 100.00% ✅

This plan bills the customer in four equal portions: immediately, at 45 days, shortly before delivery, and shortly after delivery.

## Edit a payment term

<Steps>
  <Step title="Locate the term">
    In the Payment terms list, find the term you want to edit.
  </Step>

  <Step title="Open the menu">
    Click the **⋮** menu on the right of the row and select **Edit**.
  </Step>

  <Step title="Update and save">
    Adjust the General Information, installments, Identifiers, or Status. Click **Save** to apply changes.

    <Warning>
      Editing a payment term doesn't change the terms already locked on existing quotes. Only new quotes pick up the updated configuration.
    </Warning>
  </Step>
</Steps>

## Delete a payment term

<Steps>
  <Step title="Locate the term">
    In the Payment terms list, find the term you want to delete.
  </Step>

  <Step title="Open the menu">
    Click the **⋮** menu on the right of the row and select **Delete**.
  </Step>

  <Step title="Confirm">
    Confirm the deletion. The term is removed from the list.
  </Step>
</Steps>

<Warning>
  Before deleting a payment term, verify it isn't used by any active quote templates. Deactivate it (set Status to `Inactive`) instead of deleting if you want to preserve historical references.
</Warning>

## Common questions

<AccordionGroup>
  <Accordion title="Do I have to add installments even for a simple Net 30 term?">
    Yes. Even a single-payment term requires one installment row with `100` in the **Percentage** field and `Net 30` (or any deadline) in the **Term** field. The Total Percentage must equal 100% before you can save.
  </Accordion>

  <Accordion title="Can I create installments that don't total 100%?">
    No. Qwoty prevents saving a payment term whose total doesn't equal exactly 100.00%. This ensures the full quote amount is always billed.
  </Accordion>

  <Accordion title="Can I mix standard and custom deadlines in the same plan?">
    Yes. Each installment has its own Term dropdown, so you can combine `Net 30` with `Custom` deadlines like `2 days before delivery` in the same payment term.
  </Accordion>

  <Accordion title="What's the difference between Name and Reference?">
    **Name** is the label shown in the app and to customers. **Reference** is an optional internal short code (often identical to the name but useful when your accounting team uses a different internal label).
  </Accordion>

  <Accordion title="What does the API Name field do?">
    It's a technical identifier used by integrations and API calls to reference the payment term. Use a short, unique string without spaces or special characters. It's optional if you don't use the API.
  </Accordion>

  <Accordion title="Can I deactivate a payment term instead of deleting it?">
    Yes. Set **Status** to `Inactive` to hide the term from new quotes while preserving existing quotes that already use it. You can reactivate it at any time.
  </Accordion>

  <Accordion title="What happens to quotes that use a deleted payment term?">
    Existing quotes keep the term's data for historical accuracy, but you cannot create new quotes with a deleted term. Prefer deactivation over deletion unless you're sure the term was never used.
  </Accordion>

  <Accordion title="Can different quote templates use different payment terms?">
    Yes. Each template can have its own default payment terms, and you can offer multiple terms in the same template so sales reps pick the right one at quote creation.
  </Accordion>
</AccordionGroup>

## Related

<CardGroup cols={2}>
  <Card title="Quote templates" icon="clone" href="/user-guide/templates/introduction">
    Link payment terms to templates so new quotes inherit them.
  </Card>

  <Card title="Payment methods" icon="credit-card" href="/user-guide/settings/workspace/payment-methods">
    Configure how customers actually settle the invoices — bank transfer, card, direct debit.
  </Card>

  <Card title="Quote lifecycle" icon="file-invoice-dollar" href="/user-guide/quotes/reference/lifecycle">
    See where payment terms appear in the quote flow.
  </Card>

  <Card title="Business units" icon="building-user" href="/user-guide/settings/workspace/business-units">
    Payment terms apply across a business unit's quotes.
  </Card>
</CardGroup>