How to Manage Payment Terms


Payment Terms (also called Terms of Payment) is documentation that details how and when your customers pay for the products or services. Terms of payment set your business’ expectations for the amount, including when clients pay and what penalties they may receive for missed payments.


Step 1. Activate the Suppliers and Items Module

  • Open the Configuration page and go to the User Management tab.
  • Select users who will work with the Suppliers and Items module and provide them with corresponding roles. To do that, press Edit Action, and in the Roles tab, set the user rights.
  • To save the changes, press the Update button below.

Step 2. Create Your Own Payment Terms

In Precoro, by default, there are two pre-configured types of payment:

  • Prepayment is a payment you make to the supplier before shipping goods or providing any services. The supplier will only do this with pre-paid money and send an invoice for the goods. 
  • Post payment is a payment after which you receive the goods, and the supplier gets the payment if everything is fine with the goods.

You can easily deactivate or redact them in the Edit mode.

To deactivate payments, uncheck the Active checkbox and press the green button in the Edit option to save the changes:

In order to enter new payment terms, click on the green Add button and enter the information on the following terms:

  • Prepayment % —  set the prepayment percentage the supplier wants to receive in advance.
  • Post payment % — set the prepayment percentage the supplier wants to receive after the supply/service provision.
  • Credit Period (days) — the negotiated number of days allowed to wait before paying an invoice.

There is no restriction on the number of payment terms you can enter in Precoro.

Step 3. Set the Payment Terms Information for the Supplier

To use the payment terms in documents, you need to set them for the suppliers:

  • In the left-side menu, open the Suppliers and Items section and go to the Supplier Management option.
  • Choose the previously created supplier for whom you wish to set the terms.
  • Open the supplier in the Edit mode and add the payment terms information by choosing the necessary options from the drop-down list.
  • After making the changes, press the Update button below.

To learn more about creating and managing suppliers, follow this link.

Please note that you can add as many payment terms to one supplier as you wish.

Step 4. Specifying Payment Terms in Documents

In Precoro, when creating such documents as Purchase Orders or Invoices, you can add the payment terms for the supplier:

  • Click on the Create a new document button.
  • Choose the Supplier and Payment Terms information.
  • Save the new document.