Payment Terms Template in ERPNext
A Payment Terms Template allows you to group multiple payment terms into a reusable structure for transactions.
It standardizes payment schedules like 30-70, milestone billing, or advance-part payment structures.
Key Concept
- Combines multiple Payment Terms into one template
- Automatically fetched in Sales and Purchase transactions
- Ensures consistent payment scheduling across documents
Example Use Case
If payment is split into:
- 30% advance
- 70% after delivery
Then both terms can be grouped into a single Payment Terms Template.
Prerequisite
- Payment Terms must be created before creating the template
How to Create a Payment Terms Template
- Go to Payment Terms Template list and click New.
- Enter a template name.
- Add multiple Payment Terms in the table.
- Ensure total Invoice Portion equals 100%.
- Save the template.
Total Invoice Portion must always equal 100% for correct allocation.
How It Works
- When a Customer/Supplier is selected, the template is auto-fetched.
- Payment schedule is automatically populated in the transaction.
- Each installment is mapped to its respective due date and amount.
Payment Allocation Feature
If “Allocate Payment Based on Payment Terms” is enabled:
- Payments are automatically split as per defined terms
- Each installment is allocated correctly during Payment Entry
- Reduces manual allocation effort
Key Benefit
Payment Terms Templates simplify recurring billing structures and ensure consistent payment planning across all sales and purchase transactions.
