Configuring Payment Terms in Work 365

Applies to: Work 365 v3.5 and above, Dynamics 365
Audience: System Administrators, Billing Managers

Overview

In Work 365, the Invoice Due Date is automatically calculated based on the Payment Term assigned to a Billing Contract. Correct configuration of payment terms in both Work 365 and Dynamics 365 ensures accurate invoicing and predictable billing cycles across your customer accounts.

Standard Payment Terms in Dynamics 365

To configure default invoice terms in Dynamics 365:

Navigation:
Settings > Customizations > Customize the System > Entities > Invoice > Fields > paymenttermscode

✅ Default Option Set Values:

• Net 30

• 2% 10, Net 30

• Net 45

• Net 60

• Due On Receipt

Standard Payment Terms in Work 365

Work 365 supports both standard and custom payment terms, but only terms that are mapped to Dynamics 365 will be applied during invoice generation.

Navigation by Version:

• Work 365 Version: v3.7 and above Navigation Path: Work 365 > Administration > Admin Hub > Administration Settings > Invoicing > Payment Terms
• Work 365 Version: v3.5 Navigation Path: Work 365 > Administration > Configuration Settings > Invoicing > Payment Terms

✅ Default Payment Term Mappings:

• Work 365 Payment Term: Net 15 Dynamics 365 Mapping: ❌ Custom term (must be added)
• Work 365 Payment Term: 2% 10, Net 30 Dynamics 365 Mapping: ✅ 2% 10, Net 30
• Work 365 Payment Term: Net 30 Dynamics 365 Mapping: ✅ Net 30
• Work 365 Payment Term: Net 45 Dynamics 365 Mapping: ✅ Net 45
• Work 365 Payment Term: Net 60 Dynamics 365 Mapping: ✅ Net 60
• Work 365 Payment Term: Net 90 Dynamics 365 Mapping: ❌ Custom term (must be added)
• Work 365 Payment Term: Due On Receipt Dynamics 365 Mapping: ✅ Due On Receipt

Note: Only mapped payment terms will be applied to Billing Contracts. Unmapped terms will be ignored during invoice generation.

Creating a Custom Payment Term in Work 365

To add custom terms like Net 15 or Net 90, which aren’t available by default:

Steps:

1. Navigate to the Payment Terms section based on your Work 365 version.

2. Click + Add new Term

3. Fill in the fields:

   • Name: (e.g., Net 15)

   • Due in (Days): (e.g., 15)

4. Click Save

✅ Upon saving, Work 365 will automatically create a corresponding entry in Dynamics 365’s paymenttermscode field for use in invoice records.

Important Considerations

Custom Terms Must Be Created:
Terms like Net 15 or Net 90 must be manually created in Work 365 to be available for use.

Mapping is Mandatory:
Only payment terms that are mapped to Dynamics 365 will apply to Billing Contracts.

Invoice Sync Behavior:
Payment terms configured in Work 365 are reflected in Dynamics 365 invoices under the paymenttermscode field upon synchronization.