Set payment methods and terms

Overview

Your payment methods tell clients how they can pay you. Your default payment term tells clients when payment is due. Both are configured on the Sales tab of Business Settings and flow onto every invoice you send. Setting these up before you send your first invoice means you do not have to fill the details in invoice by invoice — the defaults are applied automatically.

Who This Workflow Is For

This workflow applies to Admin, Business Owner, and Sole Trader.

Before You Start

Decide which payment methods you want to offer. Have your BSB (six-digit Bank State Branch code) and account number ready if you want bank transfer details to appear on invoices. If you accept PayID or PayPal, have those details ready too. Decide on a default payment term — see the table in this article for the five options.

Step-by-Step Process

Add or edit payment methods

Payment methods define how the business receives payment from clients. Multiple methods can be added and made available on invoices. Four types are supported:

Payment method type	Details entered
Bank account	Bank name, account name, BSB, and account number.
PayID	PayID details.
PayPal	PayPal email and PayPal.me link.
Other	Any payment instructions not covered by the other types.

To add a payment method

1. In the left sidebar under ADMIN, select Business Settings.
2. Open the Sales tab.
3. Scroll to Payment methods.
4. Select Add.
5. Select the required payment method type from the dropdown list.
6. Enter the required payment details for the selected type.
7. (Optional) Add any additional payment instructions in the text box.
8. Select Save.

To edit a payment method

1. Open the Sales tab in Business Settings.
2. Scroll to Payment methods.
3. Select Edit on the payment method to update.
4. Update the payment method type or payment details.
5. Select Save. The updated payment method is available for invoices sent to clients.

Set the default payment term

The default payment term applies across past and future quote, job, and invoice records when changed.

1. Open the Sales tab in Business Settings.
2. Scroll to Default payment terms.
3. Open the dropdown list.
4. Select the required payment term:

Payment term	Definition	Typical use
50% upfront & 50% on completion	Client pays 50% before work begins; remaining 50% on completion.	Use when you want a deposit before starting and the balance due at completion.
30% upfront & 70% upon completion	Client pays 30% before work begins; remaining 70% on completion.	Use when you want a smaller deposit upfront and the majority due at completion.
100% upfront	Client pays the full amount before work begins.	Use for small jobs, fixed-price work, new clients, custom orders, or work requiring materials in advance.
100% upon completion	Client pays the full amount after work is completed.	Use for trusted clients, account customers, or jobs where you are comfortable collecting at completion.
Net 30	Client must pay the invoice within 30 days of the invoice date.	Use for commercial clients, approved account customers, or businesses on standard payment terms.

5. Select Save all settings. The selected payment term applies across past and future records.

Stripe as a payment provider

To accept card payments through Stripe, connect Stripe from the Integrations tab in Business Settings, then tick Stripe online payments here on the Sales tab so the Pay Now link appears on invoices. For the full payment flow — including how Stripe, Xero, and the Client Portal combine — see Connecting Stripe for Online Payments.

What Happens Next

Every new invoice you create now picks up the default payment term and shows your configured payment methods. You can override the payment term on an individual invoice by editing the Payment terms field before sending. Clients see the payment options on the invoice PDF and (where the Client Portal is enabled) in the portal.

If you also want to add the matching logo to the PDF, follow Upload your quote and invoice logo.

Common Issues

• Bank details did not appear on the invoice. Confirm you saved the bank-transfer details on the Sales tab. The invoice PDF only shows payment details where a payment method has been configured.
• Wrong terms on a sent invoice. Sent invoices keep whatever terms they had at the time of sending. Update the default in Business Settings for future invoices, and edit and resend the existing invoice if you need to correct it.
• Payment term change applied to old quotes too. Default payment term changes apply across past and future quote, job, and invoice records — this is by design. Override on individual records where needed.
• Where to learn the Stripe payment flow. See Connecting Stripe for Online Payments for connecting Stripe, adding it to your payment profile, and how clients pay across Stripe, Xero, and the Client Portal.
• Cannot see the Sales tab. Business Settings → Sales is available to the Business Owner and Admin. Finance has access scoped to Xero-related settings only.

Related Guides

• Configure business settings
• Set quote validity and reminder defaults
• Upload your quote and invoice logo
• Create an invoice
• Mark an invoice as paid