Finance Payment Uncategorized

Payment Terms

Payment terms refer to the conditions that dictate how and when a payment for a product or service is made. Payment terms typically include details such as the amount due, the due date, and any late payment fees or interest charges that may apply.

Payment terms can vary widely depending on the type of business and the industry it operates in. For example, some businesses may require payment in full upfront, while others may offer payment plans that allow customers to pay over time. Common payment terms include net 30 (meaning the customer has 30 days to pay), net 60 (60 days to pay), or net 90 (90 days to pay).

There are several reasons why someone would want to use payment terms for their customers. Here are a few of the most common ones:

  1. Boost cash flow: By using payment terms, you can encourage customers to pay you sooner, which can help boost your cash flow. This is especially important for small businesses that may struggle with cash flow issues.
  2. Increase sales: Offering payment terms can make it easier for customers to make purchases from you. If customers know that they can pay for a product or service over time, they may be more likely to make a purchase.
  3. Build customer loyalty: By offering payment terms, you can show your customers that you trust them and value their business. This can help build customer loyalty and increase the likelihood that they will continue to do business with you in the future.
  4. Stay competitive: If your competitors are offering payment terms, you may need to do the same in order to stay competitive. By offering payment terms, you can keep up with your competitors and attract new customers who are looking for flexible payment options.

Overall, using payment terms can be a useful tool for promoting growth for businesses. However, it’s important to set clear payment terms and to communicate them clearly to customers to avoid confusion or payment delays.

Here’s a tutorial on how to set up payment terms within the ServiceWorks software:

Enabling Payment Terms

First, hover over the Customer section of the toolbar and select Customers

In the customer view menu, select the name of an existing customer from the stored list or create a new one using the button in the upper right corner

Once in the customer edit menu, scroll down to the Account Information panel. There you should see the Payment Term dropdown box.

When selected, you’ll have the option of setting the payment terms to either Immediately(which causes the payment to be due upon the scheduled service date), 15, 30, 60, and 90 Days.

An easy way to remember how this function works is Due Date = Scheduled Date of Service + Payment Term Days

Once you’re done with your payment terms selection, click Save to continue. The due dates of all future services for this customer should now be due within the selected payment term date.

For example, we’re going to give our customer, Randall Haverston, a 30 Day Payment Term Agreement. Their next scheduled job is set for April 1st.

When looking at the invoice for this particular job, we can see that the due date is exactly 30 days after the service date per the payment terms.

Note: You can use this same process to update the payment terms on accounts with terms already applied. The changes will reflect on all scheduled jobs not marked completed once updated.

Adding Payment Terms To Your Invoice/Estimate

Now that you’ve enabled your payment terms for your customers, you may want to display payment term days on the invoices and estimates that are sent via email. Here’s how to add this to your templates


Open up your configurations tab and navigate to Configuration -> Invoice Settings -> Invoice

Using the Legend on the right, copy and paste the {PaymentTerm} tag into your invoice template, then click Save

Now the days of the payment terms should be visible in the same spot on your invoices whenever they are sent


Open up your configurations tab and navigate to Configurations -> Estimation Settings ->Estimation Template

Using the Legend on the right, copy and paste the {PaymentTerm} tag into your estimation template, then click Save

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