# How to Set Up Payment Terms in QuickBooks Desktop

> Set up payment terms like Net 30 in QuickBooks Desktop, assign them to customers and vendors, and apply early-payment discounts when they pay.

- URL: https://logistify.ai/guides/quickbooks-desktop/set-up-payment-terms/
- Section: QuickBooks Desktop Guides, Sales orders & pricing
- Applies to: QuickBooks Desktop Enterprise, Premier, Pro, Accountant
- Steps checked against: Intuit's QuickBooks Desktop help articles, updated August 2026
- Updated: 2026-10-19

**Short answer:** In QuickBooks Desktop, payment terms live at Lists > Customer & Vendor Profile Lists > Terms List. To set a customer's default, such as Net 30, choose Payment Terms on their Payment Settings tab in the Customer Center, or select Add New. When the customer pays early, Receive Payments suggests the discount from those terms. Intuit's help covers Pro, Premier, Enterprise and Accountant.

## Before you start

- Write down the terms you actually offer, such as Net 30 or a discount for paying within 10 days, and which customers get each one.
- Check the aging preference at Edit > Preferences > Reports & Graphs > Company Preferences. It decides when an invoice or bill starts to age.
- With Age from due date, a transaction counts as current until its due date. With Age from transaction date, aging starts on the transaction date.
- If you offer early-payment discounts, decide which account will track the discounts you give customers. Ask your accountant which one to use.

## Step 1: Review the terms you already have

1. Go to Lists > Customer & Vendor Profile Lists > Terms List.
2. Double-click a term to open it and check how it's set up.
3. Correct any term that doesn't match what you tell customers.

Intuit lists a wrongly set-up term as one reason paid invoices and bills still show on open transaction reports. Give each term a name your customers will recognize, such as Net 30.

## Step 2: Set a customer's default terms

1. Go to Customers > Customer Center.
2. Double-click the customer.
3. Open the Payment Settings tab.
4. Choose the term in Payment Terms.
5. If the term you need isn't listed, select Add New and set it up there.
6. Select OK.

The same tab holds the customer's price level. See how to [set up price levels and customer-specific pricing](https://logistify.ai/guides/quickbooks-desktop/price-levels-customer-pricing/).

## Step 3: Set a vendor's default terms

1. Go to Vendors > Vendor Center.
2. Double-click the vendor and open the Payment Settings tab.
3. Choose the vendor's term in Payment Terms, or select Add New.
4. Select OK.

Check the Due date on each bill you enter. When you pay at Vendors > Pay Bills, select Discount if the vendor gave you one on that bill. More in how to [enter and pay bills](https://logistify.ai/guides/quickbooks-desktop/enter-and-pay-bills/).

## Step 4: Check terms on each invoice

1. Go to Customers > Create Invoices and choose the customer in Customer:Job.
2. Check Terms at the top of the invoice, along with the date, invoice number and Bill To details.
3. Change it if this sale has different terms.
4. Select Save & Close.

## Step 5: Apply an early-payment discount

1. Go to Customers > Receive Payments.
2. Choose the customer in Received From, enter the Amount received, and check the date and payment method.
3. Select the invoice or invoices being paid.
4. Select Discounts and Credits. Intuit's early-payment steps call this button Discount Info.
5. QuickBooks suggests a discount amount from the customer's payment terms and the payment date. Change it if you need to.
6. Enter the account you use to track the discounts you give customers.
7. Save the discount, then select Save & Close on the payment.

For the rest of the payment steps, see how to [receive payments and apply them to invoices](https://logistify.ai/guides/quickbooks-desktop/receive-payments-apply-to-invoices/).

## Things that trip people up

- Paid invoices still show as open. Intuit's checklist starts with payments or credit memos that aren't applied. It then covers the aging preference and wrong terms in the Terms List. It also covers the date on the server or workstation, and payments dated after the report's date range.
- Terms reset after Accountant's Changes. Terms and due dates aren't part of the changes an accountant sends back, so imported invoices and bills use the default terms. To fix them, pick the right term on the customer's or vendor's Payment Settings tab.
- Statement charges work differently. To discount them, Intuit says to use a Discount item in the customer's Accounts Receivable register.

## Where QuickBooks Desktop leaves the work to you

- QuickBooks suggests early-payment discounts, but someone has to open the discount window and apply them on each payment.
- Each payment has to be applied to the invoices it pays. Unapplied payments are the first reason Intuit gives for paid invoices that still show as open.
- After an accountant's changes come back, someone has to check terms on the imported invoices and bills.

## How Logistify helps

Logistify doesn't set your terms or chase overdue invoices. The [Accounts Receivable Service](https://logistify.ai/agents/accounts-receivable/) matches the customer payments in your bank file to the open invoices they pay and records them in QuickBooks Desktop.

To remind customers what's open, see how to [send customer statements](https://logistify.ai/guides/quickbooks-desktop/send-customer-statements/).

## Frequently Asked Questions

### Where is the Terms List in QuickBooks Desktop?

Go to Lists > Customer & Vendor Profile Lists > Terms List. Double-click a term to check or edit it.

### How do I change a customer's payment terms?

Open the customer in the Customer Center, go to the Payment Settings tab and pick a new term in Payment Terms. Select Add New if the term doesn't exist yet.

### How do I record an early-payment discount in QuickBooks Desktop?

In Receive Payments, select the invoice, then Discounts and Credits. QuickBooks suggests the discount from the customer's terms and payment date, and you choose the discount account.

### Why does a paid invoice still show as open?

Usually a payment or credit memo isn't applied to it. Intuit also points to the aging preference and to terms set up wrong in the Terms List.

## Sources

- [Intuit: A paid bill or invoice shows on report or window of open transactions](https://quickbooks.intuit.com/learn-support/en-us/help-article/transaction-reports/paid-bill-invoice-shows-report-window-open/L41L30yys_US_en_US)
- [Intuit: Fix errors and unexpected results when importing accountant's changes in QuickBooks](https://quickbooks.intuit.com/learn-support/en-us/help-article/import-export-data-files/resolve-errors-unexpected-results-importing/L6A9AxGXJ_US_en_US)
- [Intuit: Create an invoice in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/invoicing/create-invoice-quickbooks-desktop/L0J64E3xu_US_en_US)
- [Intuit: Record an invoice payment in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/accounts-receivable/record-invoice-payment/L9bczboPR_US_en_US)
- [Intuit: Enter bills in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/pay-bills/enter-bills-quickbooks-desktop/L4kJzwgj5_US_en_US)
- [Intuit: Pay bills in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/pay-bills/pay-bills-quickbooks-desktop/L0zrGizxu_US_en_US)
- [Intuit: Set up custom rates or prices for employees, vendors, or customers](https://quickbooks.intuit.com/learn-support/en-us/help-article/pay-wages/set-custom-rates-prices-employees-vendors/L9WazHZ9l_US_en_US)