What is Invoice Term?

Invoice term is an amount that you can use to offset or add on to the amount of an invoice. This amount can happen after the sub-total line or after the tax line based on whether it is tax applicable or not.

Invoice term allows accountants to capture additional information that tax and discount alone cannot provide.

Most customers will use invoice term as a lump-sum discount, trade-in value, service charges, etc.

Invoice term is quite useful in terms of customization.

There are two types of Invoice Term: Tax Applicable and non-tax applicable.

Let consider this scenario: Subtotal = 100, Invoice term = 10, 

If the term is not tax-applicable, then Total = (100 + 7% x 100) - 10 = 107 - 10 = $97

If the term is tax applicable then          Total = (100-10) + (100-10) x 7% = $96.3

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