Net Terms
Net terms (like Net 30, Net 60) specify how many days a customer has to pay an invoice after it's issued. Net 30 means payment is due within 30 days.
Net Terms Definition
Net terms define the payment deadline on an invoice. "Net 30" means the full amount is due 30 days from the invoice date. "Net 60" gives 60 days. Some terms include early payment discounts, like "2/10 Net 30" — take 2% off if you pay within 10 days, otherwise full amount due in 30.
Common Net Terms
Choosing the Right Net Terms
How Net Terms Work in QuickBooks
Set default payment terms in Settings → Account and Settings → Sales. You can also set terms per customer. QuickBooks uses the terms to calculate due dates on invoices and track aging in the A/R Aging report.
FAQ
Q: What if a customer doesn't pay by the net terms date?
A: Follow up with a reminder. If consistently late, consider requiring prepayment, shortening terms, or adding late fees (check your state's rules on late fees first).
Related Terms
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