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Payment Terms

Payment Terms define when a customer must pay an invoice or when TBPC must pay a vendor bill. They are used on customer invoices, vendor bills, sales orders, and purchase orders to automatically calculate due dates.

Configuration > Invoicing > Payment Terms

Payment Terms List

TBPC uses a small set of standard payment terms:

Payment TermDue After
Immediate Payment0 days (same day)
15 Days15 days after invoice date
21 Days21 days after invoice date
30 Days30 days after invoice date
45 Days45 days after invoice date

Structure of a Payment Term​

A payment term consists of one or more installment lines. Each line defines:

  • What percentage of the total is due
  • After how many days (or on what day)
  • Using which account (advanced)

For simple terms like "30 Days", there is a single line: 100% due 30 days after invoice date.

For complex terms like "50% down, 50% on delivery", you'd have two lines: 50% immediate and 50% after X days.

Creating a Payment Term​

  1. Navigate to Configuration > Invoicing > Payment Terms
  2. Click New
  3. Enter the Payment Terms name (e.g., "30 Days")
  4. In the Due Terms tab, click Add a line:
    • Due: Enter the percentage (e.g., 100) and select "Percent"
    • After: Enter the number of days and the basis (After Invoice Date, End of Month, End of Following Month, etc.)
  5. (Optional) Configure an Early Discount if you offer discounts for early payment
  6. Click Save

Example: 30 Days Payment Term​

30 Days Payment Term

The form shows:

  • Payment Terms name: 30 Days
  • Due Terms:
    • 100% Percent, 30 Days after invoice date
  • Preview:
    • Example: 1,000.00 USD invoice dated 04/12/2026
    • Installment of $1,000.00 due on 05/12/2026

Early Discount​

Payment terms support Early Discount — a discount offered to customers who pay before the due date.

Example: "2/10 Net 30" means 2% discount if paid within 10 days, otherwise full amount due in 30 days.

Configuration:

  1. Check Early Discount
  2. Enter the discount percentage
  3. Enter the number of days within which the discount applies
  4. Select whether the discount is computed on the tax-excluded or tax-included base

:::info TBPC Usage TBPC typically does not use Early Discount — most invoices follow simple "X Days" payment terms. If you need to offer a discount, consider whether it should be a payment term early discount or a Credit Note after the invoice. :::

Using Payment Terms on Invoices​

When creating a customer invoice or vendor bill:

  1. Open the invoice/bill form
  2. Select a Payment Term from the dropdown
  3. Odoo automatically computes the Due Date based on the term

Example: Invoice dated 04/12/2026 with "30 Days" payment term → Due date = 05/12/2026

Deleting a Payment Term​

:::warning Don't Delete Used Payment Terms If a payment term is referenced on existing invoices, you cannot delete it. Instead, archive it — this hides it from dropdowns for new invoices while preserving history.

To archive: Open the payment term form → click the gear icon (or Actions menu) → Archive. :::

Best Practices​

  • Keep it simple — standard terms like 15, 30, 45 days cover most scenarios
  • Align with vendor contracts — use the same term name your vendors use for consistency
  • Don't create one-off terms — for special cases, use a standard term and override the due date manually
  • Review periodically — archive unused terms to keep the dropdown clean
  • Match BIR reporting — payment terms don't affect BIR filing directly, but clear terms help with collection follow-up via Aged Receivables