Configuring payment terms in SAP Business One ensures invoices generate accurate due dates and helps maintain proper receivables management. A correct SAP B1 payment terms setup supports cash flow planning, prevents billing disputes, and improves financial tracking.
In this guide, we explain how to define payment terms in SAP Business One and what each field controls.
🎥 Watch the step-by-step tutorial below:
Where to Configure Payment Terms in SAP Business One
To begin your SAP Business One payment terms setup, go to:
Administration → Setup → Business Partners → Payment Terms
From here, you can create a new payment term and define how due dates are calculated for customer invoices and transactions.
Key Fields in SAP B1 Payment Terms Setup
When creating payment terms in SAP B1, you will define:
Payment Terms Code – the name or identifier for the payment term.
Due Date Based On – determines the starting point for calculating the document’s due date.
Start From – indicates the number of days added from the base date to compute the final due date.
Once these values are entered, click Add to save the payment term.
Proper configuration ensures documents follow consistent billing schedules and improves SAP Business One receivables management.
Correctly setting up SAP Business One payment terms helps automate due date calculations, supports accurate invoicing, and strengthens financial processes.
If you need assistance with SAP Business One configuration, consult your SAP partner or support team.