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Create Payment Terms
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User AD
Administration Master Data Payment Terms New

Create Payment Terms

Define a new payment terms configuration with net days, discounts, and compliance settings

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Basic Information

Unique code, auto-formatted to uppercase

Net Days Configuration

Number of days from invoice date
Additional days before penalty applies (default: 0)

Advance Configuration

Percentage of total amount to be paid in advance
When the remaining balance is due

Installment Configuration

# Percentage (%) Due After (Days) Description
1
2
3
Total Percentage 100%

Early Payment Discount

Enable Early Payment Discount Offer a discount for payments made before the due date
Percentage discount on invoice amount
Payment must be made within these many days

MSME Compliance

Auto-Override for MSME Vendors Automatically limit payment days to 45 for MSME-registered vendors
As per MSMED Act 2006 — this value cannot be changed

As per Section 15 of the MSMED Act 2006, buyers must make payment to MSME suppliers within 45 days of acceptance of goods/services. Interest at 3x the bank rate is applicable on delayed payments.

Late Payment Penalty

Enable Late Payment Penalty Apply penalty interest on overdue payments
Monthly penalty interest rate on overdue amount
Grace days after due date before penalty applies
Cancel

Payment Schedule Preview

Payment Terms Code
—
Description
—
Payment Type
Net Days
Payment Schedule
Invoice Date (Day 0)
Invoice received and approved
Due Date
Full payment due
100% of invoice amount
Example Calculation
Invoice Amount: ₹1,00,000
Payment Due: ₹1,00,000