Setting Up Payment Terms in Freightools
Payment Terms define how and when invoices are due. Once configured, they can be assigned to partners and automatically applied to invoices.
Where to Find Payment Terms
Go to:
Accounting → Payment Terms
How to Create a New Payment Term
- Click New Payment Term.
- Complete the relevant fields.
1️⃣ Name
Choose a clear and descriptive name.
This is what users will see when selecting the payment term on partners or invoices.
Examples:
- Immediate Payment
- 30 Days Credit
- 45 Days EOM
- 15 Days from ETD
2️⃣ Code (Optional)
A short internal reference.
Useful for reporting or structured naming, but not mandatory.
3️⃣ Payment at Sight (Immediate Payment)
For cash or immediate payments:
- Check the Payment at Sight checkbox.
This means the invoice is due immediately.
4️⃣ Credit Days
For credit-based terms:
- Enter the number of credit days.
Example:
If 30 is entered, the due date will be calculated 30 days after the relevant base date.
5️⃣ End of the Month (EOM)
If payment should be calculated from the end of the invoice month:
- Check the End of the Month checkbox.
Example:
Invoice date: 10 March
Term: 30 days + End of Month
The calculation starts from 31 March, not from 10 March.
6️⃣ Expected Date (Shipment-Based Terms)
Payment terms can also depend on shipment-related dates.
From the Expected Date dropdown, select the relevant shipment milestone.
When using a shipment-based term:
- The invoice date will automatically reflect the selected shipment date.
- The due date will then be calculated from that date.
Example:
Expected Date = Master from ETD
The invoice date will be set to the shipment ETD.
Credit days will be calculated from that ETD.
This is especially useful when commercial agreements define payment terms based on shipping milestones rather than invoice issuance date.
Bulk Upload of Payment Terms
Payment Terms can also be uploaded in bulk by the technical team.
This is useful when:
- Migrating data from another system
- Setting up a large number of predefined terms
- Standardizing payment terms during implementation
Bulk upload ensures faster setup and consistency across the system.
How Payment Terms Affect Invoices
Once assigned:
- The invoice due date is calculated automatically.
- Manual calculation is avoided.
- Consistency is maintained across financial documents.
Payment terms can be assigned:
- On the partner level (default behavior)
- Directly on individual invoices (if adjustment is needed)
Recommended Setup Approach
- Define standard immediate and common credit terms first (e.g., 30, 45, 60 days).
- Add EOM versions if required by customer agreements.
- Configure shipment-based terms for operationally driven contracts.
- Use clear naming so users immediately understand the logic behind each term.