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Set your own payment terms

It’s convention that people pay their bills on the 20th of the following month, or 30 days after invoice, but you invent any payment terms you like. Setting payment terms begins before you provide the goods or services. Put your payment terms on your website and on any quotes that are sent.

When you invoice, make sure your invoice template has your payment terms laid out clearly.

You might say: “Please pay on invoice” or “Payment required within 7 days”.

You might also say that “Payment is due on completion”.

It’s may also be acceptable to ask before you do the job when you’ll be paid. A good approach is to say that you are busy so you’re prioritizing people that can pay immediately.

“I have a number of customers in the queue to do work. If you can pay me on completion then I’ll prioritize you first”.

You can also ask for a deposit.

“Sorry but we’ve had a number of cancellations and late payments. Can we have a deposit before we book the job in?”

Don’t feel bad about being paid quickly. Essentially you’re funding your customers business until you get paid.


Richard Gunn
30 April 2009 #

I have different customers on different payment terms. Can xero handle this (I can’t see any ability to set this , e.g. in the Contacts info) ?

Rod Drury
30 April 2009 #

That is improvement we will do in the not too distant future. Thanks Richard.

12 August 2011 #

Was this improvement ever made? I am looking at the trial

29 September 2011 #

I want this too, would be nice if today’s date was defaulted for invoicing and the pay due by term could be globally set, with per contact override in financial terms. Would speed up invoicing and reduce mistakes.

Ross Coombes
8 December 2011 #

We need this too, currently we have to cross reference with a PDF every time we raise an invoice…. SLOW

Have we reached the not too distant future yet? :0)

3 March 2012 #

I would like to have two rates on my invoices, one for cash on delivery and one for payment on account.
Can xero offer prompt payment discount options on the invoices?

Michael Mori
5 March 2012 #

Another thing affecting invoicing on both Receivables and Payables, is the ability to set default due dates per customer/supplier. The same functionality that is available in the “Repeating Invoices” section should be made available in the Contacts screen, with a possible generic default and the ability to customise each customer/supplier.

Your normal terms could be 30 days, but on certain “risky” clients, you might want 7 days. In the Terms and Conditions you might say “Payment is due on the due date shown on this invoice” to prevent ambiguity.

5 March 2012 #

I was going to get onboard until I saw this thread. For a SASS system, slow customer responses to basic needs are a fail. There are alternatives. Is this because you have a MYOB interest?

Rod Drury
6 March 2012 #

Greg I hardly think we can be accused of going slow. In the blog you’ll see numerous responses about prioritization and our process.

Building a horizontal accounting application is a massive bit of work. Our customers, feedback and usage metrics play a big role in what we do next.

This is an area that we haven’t done much on recently. It has been on the list for a while but been bumped due to other requests. I apologize we haven’t got there yet. We do have some work in this area coming up and the team are well aware that we can do better here.


Rowan Pettett
15 March 2012 #

You guys are doing an awesome job, but add my name to the list of users who would like a global setting where you can set your default number of days from invoice approval to payment due, so that Xero automatically enters the due date on an invoice when it is created.

Justin Hollingworth
25 April 2012 #

Yes, agree with what your current customers and potential customers have been saying above – most small businesses have different payment terms with different suppliers. Another workaround would be the ability to have a text box entry on the bottom of a (draft) invoice webpage, which has a field that can be added to the bottom of a printed invoice, allowing customisation of each individual (draft) invoice.

10 July 2012 #

I see another user above was looking for a % discount applied when clients pay on or before the due date. Has this been done?

23 August 2012 #

Please add me to the list, we really require this feature ASAP.

23 August 2012 #

Please put me down for customer terms – we don’t see how it’s not a basic, basic feature of an accounting program. We do 30 days from EOM and we need this to come up automatically.
We also require to be able to set individual supplier terms; 7 days, 14 days, 30 days, 30 days from EOM and have the system automatically apply these to our supplier invoices when entered with the date of the invoice.
Just like we require remittance advices, this exporting the supplier transactions list and altering it to build a simple little remittance advice, saving it, emailing it etc is just a waste of my valuable and extremely stretched time. We can pay up to 40 suppliers in one day in transactions ranging from $5 to $60,000 but we can’t advise them of it. And when our suppliers phone for a remittance and we tell them we can’t give them one, they laugh….and I have to too or I’d cry!
I see there’s alot of progress about alot of gloobly goop on the blog, but can we get back to basics now and implement some simple, normal, everyday time saving simple functions….

23 August 2012 #

Oh and also we need to be able to customise our price lists for each customer – as we charge different rates for different customers.

5 September 2012 #


This is a priority for us as well, every invoice has one of three standard terms depending on value and product category, we really need our debtors list to reflect this accurately. For Example the terms maybe 50% upfront and 50% on completion, 30% deposit and 10 weekly payments or 100% at XX days negotiated at time.

Ross Coombes
1 November 2012 #

I’ve already posted before that we would like this feature but you mentioned how it has been on the list but has been bumped down. Totally understand the reasons for this but I wondered whether you publish your development plan anywhere? I appreciate it would only be a rough guide but it would help in planning how to best work with Xero.

Maybe people could even vote formally?

Lee Shaw
12 November 2012 #

I’m inputting lots of sales invoices and I have to enter 2 dates, the doc date and a due date. Really need a facility to set Due Date on the Contact record so this date is computed from the document date. I can see we can set the Discount% on the Contact record. Please can you add the Due Date too as a matter of urgency as the lack of this functionality slows down sales invoice input.


Georgie Gascoigne
17 June 2013 #

Hi Xero Team,
I would also like to request the function for different payment terms to be featured on an invoice. Please update me on the development of this function.
Thank you,

3 July 2013 #

+1 for payment terms. Should be out-of-the-box. for any accounting platform. This may be a cause for us not going forward with Xero.

Oliver Furniss
3 July 2013 #

@Chris, Georgie and everyone else. You use invoice branding to add payment terms to sales invoices, with options to move them to the last page of the invoice, or remove the payment advice cut-away.

I hope these links help – /

16 November 2013 #

Still waiting for this…..

It’s a basic part of accounts receivable management. Knowing that in 7 days, $1000 is due, in 14 days time, $2000 is due.

Having to manually check the “payment terms” at the bottom of each invoice is ridiculous. We have to keep a seperate excel sheet to keep track of what money is owed when… Come on Xero, you’ve raised 180 million dollars in capital — get working on these basic requirements of businesses please!

Lorraine Terpend
19 November 2013 #

I agree. I am not using live invoicing yet.

29 June 2014 #


I am quite new to Xero and I am having trouble with customising an invoice to suit our particular needs. We are a plumbing company and offer our customers the opportunity of a 10% saving for early payment of invoice. ( a prompt payment discount – set at 7 days) I would like to add this field as well as the discounted due date field to the invoice. This way we give our customers the option to pay early or pay full amount on due date (set at 21bdays). I don’t seem to be able to achieve this, so I have made my own template using word and excel combined. it would be soooo much better if I could invoice through Xero. Could you please tell me how to achieve this request? Thanks

Matt Barnett
3 July 2014 #

Hi Charlotte

Thanks for the question. If you haven’t already, I’d recommend voting here in our Community.

Couple of options:

1. When invoicing, add a discount as a negative line item or discount % (with a clear description saying that it applies only if paid by date x). When the client pays if it’s within the discount period, you can match the invoice directly in the bank rec. If they pay late then you can edit the invoice and remove the additional line, leave a portion outstanding for which you can send a statement.

2. If you want to leave the invoice at the full amount, you can use Find & Match when reconciling to apply the discount after payment. Click Adjustment in section 3 > Bank fees > and change the account to the appropriate discount account.

You may also like to explore docx branding themes to get the invoice closer to how you’d like it to look.

Hope that helps for now.

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