# Terms of payment Terms of payment are used to specify the period of time to a buyer to pay off the amount due. You can set up the terms of payment by going to Sales > Terms of payment. Here you can see that ERPAG is already offering you three types of different terms: * NET 7 - payment is expected in 7 days * NET 30 - payment is expected in 30 days * 5 monthly installment - payment is divided in 5 monthly installments By using the 'Add new' option, you can create as many different terms of payment as you need ![](https://2317124154-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LILjUcr8nMnodgs_gyz%2F-LIpHDTKtsemrnU9Zb-t%2F-LIpYPrFlow3QfAmGCm1%2F12.PNG?alt=media\&token=a94709b0-e192-4e48-ac0c-0acb73075f5f) The created terms of payment you can add from within the customer and it that case, that will apply always for that customer. ![](https://2317124154-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LILjUcr8nMnodgs_gyz%2F-LIpHDTKtsemrnU9Zb-t%2F-LIpd5MRcKGcv4oPe2Zi%2F1234.PNG?alt=media\&token=ea8b601c-6d10-4038-8a7d-5694f802d5b7) If you add it from the sales order, it will apply only for that particular sales order. ![](https://2317124154-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LILjUcr8nMnodgs_gyz%2F-LIpHDTKtsemrnU9Zb-t%2F-LIpdUtCit4l8-yT92_h%2F1235.PNG?alt=media\&token=1d2f2f09-6e0f-4e8c-a386-1e2b276a811a) You can always change the terms of payment by choosing a different one from the drop down menu. ### EARLY PAYMENT DISCOUNT If you agreed with your customers to give them specific payment terms, but you want to issue a discount to them if they pay before the due date, you can set them up in the early payment discount section: ![](https://2317124154-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LILjUcr8nMnodgs_gyz%2F-LUA5tmH3M6XqHMdvDOg%2F-LUA7Z6N9OQpxJiLhrvq%2F1a.png?alt=media\&token=609dad1b-37ba-4c5f-821c-19cda015dab3) To read a more detailed explanation of this option, go to: