Net payment term

A net payment term refers to the specified number of days within which the end customer is required to settle the invoice after its finalization. This term not only affects the payment_due_date within the invoice payload but also influences the due date mentioned in the downloadable PDF version of the invoice.

To illustrate, consider the following scenario: a billing cycle spanning one month, accompanied by a net payment term of 15 days.

Application scope

The net payment term period applies to all types of invoices. It does not trigger any webhook when the payment_due_date becomes overdue.

Define a net payment term at organization level

The organization’s net payment term applies to all customers by default.

Dashboard

To define a net payment term at the organization level via the user interface, follow these steps:

1. Access the “Settings” section using the side menu;
2. Navigate to the “Invoice” tab;
3. Click “Edit” in the “Net payment term” section;
4. Select the desired number of days for the payment term or opt for a custom duration; and
5. Confirm by clicking “Edit net payment term”.

API

You can also modify the organization’s net payment term at any time through the API. Define a net payment term in days by using the net_payment_term argument within the organization object.

Add a net payment term on the organization

LAGO_URL="https://api.getlago.com"
API_KEY="__YOUR_API_KEY__"

curl --location --request PUT "$LAGO_URL/api/v1/organizations" \
--header "Authorization: Bearer $API_KEY" \
--header 'Content-Type: application/json' \
--data-raw '{
  "organization": {
  	    "net_payment_term": 15
  }
}'

Define a net payment term at customer level

Dashboard

To define a net payment term at the customer level through the user interface, follow these steps:

1. Access the “Customers” section via the side menu;
2. Select a customer from the list;
3. Open the “Settings” tab of the customer view;
4. Click “Add a net payment term” in the “Net payment term” section;
5. Choose the desired number of days for the payment term or opt for a custom duration; and
6. Click “Add net payment term” to confirm.

API

You can also modify the customer’s net payment term at any time through the API. Define a net payment term in days by using the net_payment_term argument within the customer object.

Add a net payment term on a customer

LAGO_URL="https://api.getlago.com"
API_KEY="__YOUR_API_KEY__"

curl --location --request PUT "$LAGO_URL/api/v1/customers" \
--header "Authorization: Bearer $API_KEY" \
--header 'Content-Type: application/json' \
--data-raw '{
  "customer": {
  	    "external_id": "5eb02857-a71e-4ea2-bcf9-57d3a41bc6ba",
  	    "net_payment_term": 15
  }
}'

The customer’s net payment term supersedes the one defined at the organization level. It exclusively applies to the associated customer.