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Accounting · Definition
Payment Terms
The agreed timing and conditions for settling an invoice.
Payment terms state when payment falls due and on what basis — net 30 from invoice date, 45 days end of month, cash on delivery, or a percentage in advance. They also cover discounts and late-payment charges.
Terms are a financing decision as much as an administrative one. Every extra day of supplier credit funds working capital, and every day beyond terms borrows goodwill instead.
Also called
- credit terms
- net terms
Payment Terms is not just a definition here
Accounting runs on this vocabulary every day in AWRA OpsHub — 51 of our 259 glossary terms describe things the platform actually does.