Payment terms
Define when and how a customer is expected to pay for an order.
Payment terms define when and how a customer is expected to pay for an order. They are set as a default on the customer and inherited by every sales order for that customer.
Why payment terms matter
- Set payment expectations: communicate due dates and payment methods to customers
- Drive billing behavior: terms influence invoice timing and payment collection workflows
- Trigger prepaid warnings: prepaid terms prompt the team to collect payment before issuing an order
Default payment terms
Augno includes eight built-in payment terms:
| Term | Meaning |
|---|---|
| COD | Cash on Delivery: payment due at delivery |
| CIA | Cash in Advance: payment due before shipment |
| CCD | Credit Card Due: charge card on file |
| Net 30 | Payment due 30 days after invoice |
| Net 45 | Payment due 45 days after invoice |
| Net 60 | Payment due 60 days after invoice |
| Net 90 | Payment due 90 days after invoice |
| Prepaid | Payment collected before order is issued |
These defaults cannot be modified or deleted. You can create additional custom payment terms to fit your business.
Core concepts
Customer default and order inheritance
Payment terms are set on the customer record as a default. When a new sales order is created for that customer, the terms are automatically populated. The terms can be overridden per order if needed.
Active and inactive terms
Payment terms have an active/inactive flag. Inactive terms are hidden from selection but remain on existing orders and customers where they were previously applied.
Prepaid behavior
When a customer's payment terms are Prepaid, Augno warns the team to collect payment before issuing the order. This prevents orders from entering fulfillment without payment.
Where payment terms are used
- Customer: set as the customer's default payment terms
- Sales order: inherited from the customer, overridable per order
- Invoices: payment terms determine due dates and payment expectations on invoices
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