Configure Customer Payment Terms and Credit

Payments and Credit configuration modal for a customer

Set customer-level payment and credit defaults before invoicing so due dates, receivables follow-up, and internal review expectations stay more consistent.

When To Use This

Use this page when you want a customer record to carry standard payment terms, a visible credit review status, or a credit limit before your team starts creating invoices.

When To Use This Setup

  • Set customer terms when most invoices for the customer should start from the same due-date pattern.
  • Use company Sales / Invoicing defaults when most new invoices across the company should start from the same terms before customer-specific setup is applied.
  • Set a credit status when your team needs a visible reminder to pause, review, or use a stricter collection approach before opening invoices.
  • Set a credit limit when you want the customer record to show a reference amount for receivables review and follow-up.

Before You Start

  • You can open Customers.
  • The customer record already exists, or you are ready to create it.
  • You know whether the customer should use standard terms such as Net 15, Net 30, or Due on receipt.

Steps

  1. Open Customers.
  2. Create a new customer or edit an existing one.
  3. In the customer drawer, review the core customer details first so the record is easy to identify later.
  4. Open Payments & Credit.
  5. Review Terms first:
  • Use this field when the customer usually follows the same payment window.
  • SPRK can use the saved customer terms to fill invoice Payment Terms.
  • When invoice terms fill automatically, SPRK can also calculate a starting Due Date from the invoice date.
  1. Review Credit status next:
  • Choose the status that best matches how your team wants to review future invoices.
  • Common visible options include Approved, Credit Hold, Cash Only, On Hold, and Review Required.
  1. Review Credit limit if you want the customer record to show a reference amount for receivables review.
  2. Save the customer.
  3. When creating an invoice later, review the filled Payment Terms and Due Date instead of assuming they are always correct for that specific job.
  4. Use the customer row action for AR Aging when you need to review open balances, terms, and overdue timing for that customer after invoices are posted.

What Happens Next

The customer record keeps payment and credit defaults together, new invoices can start with the customer’s payment terms already filled in, and receivables follow-up stays easier to review by customer.

Downstream Effects

  • Customer terms can prefill invoice Payment Terms and help SPRK calculate a due date from the invoice date.
  • Company-level Default invoice payment terms can seed invoices that do not already have a customer or invoice-specific terms value.
  • Common terms such as Due on receipt, Due upon receipt, EOM, x/y net N, and Net N can calculate due dates. Review unusual freeform terms manually.
  • Invoice-level terms still need review because a one-off invoice may need a different due date than the customer default.
  • If an invoice has its own terms, receivables aging can show the invoice-specific terms for that invoice instead of falling back to the customer default.
  • Receivables aging can show terms and overdue timing alongside the customer balance, which helps with collection follow-up.
  • Recording a payment is still a separate workflow. Changing terms or credit settings does not reduce an invoice balance.

If Something Looks Wrong

What You See What To Check What To Do Next
Two similar workflows or fields are easy to mix up Treating customer terms as permanent invoice instructions without reviewing the actual invoice date and due date Use the specific workflow or control named on this page
The current page does not fit the task Using Paid or another invoice status change instead of the payment workflow when money is collected Return to the workflow this page supports
The result looks ready, but a key check is unresolved Assuming a credit status blocks or approves customer activity automatically Use it as a visible control point unless your team has verified a stronger workflow around it
A needed review step is missing Forgetting to revisit older customer defaults after payment expectations change Go back to that check before continuing