Payment terms outline how customers should pay during the project. Payment terms are an essential part of the agreement between an integrator and their customers. D-Tools Cloud has some default payment terms built in, or you can add custom payment terms to meet the needs of your projects.
Payment terms for projects are part of the proposal approved by customers. When an opportunity is won and a project is created, the payment terms can be seen under 'Project Payment Terms' in the 'Payments' tab. Payment terms for change orders in a project are listed below the project payment terms.
Add Custom Payment Terms
To add a custom payment term, go to Settings > Quote > Payment Terms and click 'New payment term'. In the modal, specify the terms one after the other as a percentage of the total project value. For example, a 70% deposit to start the project and the remaining 30% upon completion.
Payment terms can also be defined as fixed amounts or a combination of percentages and fixed amounts.
Set Default Payment Terms
If most of your projects follow a similar payment schedule, you can set a specific set of payment terms as a default. You can do this for quotes and change orders. You can set one set of payment terms as the default for both quotes and change orders, or set different default payment terms for each type.
Once you set the defaults, you don’t have to specify the terms when preparing the proposals and change orders.
Set up Payment Schedule
To set the payment schedule for projects, you should specify the due dates and billing dates for payment. Check out this article to learn more about setting up the payment schedule.
Change Payment Terms
You can change the payment terms even after the project work has begun. We suggest obtaining verbal or written approval from the customer before modifying the payment terms that were agreed upon in the initial contract. In such cases, you might have to adjust the payment schedule.