You can define whatever payment terms you need in OpenERP. Payment terms determine the due dates for paying an invoice.

To define new payment terms, use the menu *Accounting ‣
Configuration ‣ Miscellaneous ‣ Payment Terms* and then click *New*.

The figure below represents the following payment term: 5000 within 5 days, 50% payment at the last day of current month, Remaining on 15th of next month.

To configure new conditions, start by giving a name to the *Payment Term* field. Text that
you put in the field *Description on invoices*, is used on invoices, so enter a clear description of
the payment terms there.

Then create individual lines for calculating the terms in the section *Payment Term*. You
must give each line a name (*Line Name*). These give an informative title and do not affect
the actual calculation of terms. The *Sequence* field lets you define the order in which
the rules are evaluated.

The *Valuation* field enables you to calculate the amount to pay for each line:

`Percent`: the line corresponds to a percentage of the total amount, the factor being given in*Value Amount*. The number indicated in*Value Amount*must take a value between 0 and 1.`Fixed Amount`: this is a fixed value given by the*Value Amount*box.`Balance`: indicates the balance remaining after accounting for the other lines.

Think carefully about setting the last line of the calculation to `Balance` , to avoid rounding
errors. The highest sequence number is evaluated last.

The two last fields, *Number of Days* and *Day of the Month*, enable the calculation of
the delay in payment for each line. The delay *Day of the Month* can be set to `-1` , `0` or any positive number. For example, if today is 20th December 2010, and if you want to set payment terms like this:

*5000 within 5 days*: set Valuation`Fixed Amount`, Number of Days`5`and Day of the Month`0`. That creates journal entry for date 25th December 2010.*50% payment at the last day of current month*: set Valuation`Percent`, Number of Days`0`and Day of the Month`-1`. That creates journal entry for date 31st December 2010.*Remaining on 15th of next month*: set Valuation`Balance`, Number of Days`0`and Day of the Month`15`. That creates journal entry for date 15th January 2011.

You can then add payment terms to a Partner through the tab *Accounting* on the partner form.