Set Payment Methods and Terms

Who this guide is for

Business Owners and Sole Traders. Admin can also set these. Finance users access Xero-related settings only — payment methods on the Sales tab are managed by Business Owner, Sole Trader, or Admin, and Finance does not configure them here.

Overview

Set the default payment terms and the payment methods that appear on every invoice you send.

Before you start

Decide on your default payment term. The available options are: 50% upfront & 50% on completion, 30% upfront & 70% upon completion, 100% upfront, 100% upon completion, and Net 30. Have any bank, PayID, or PayPal details handy for the payment methods you want to accept.

Steps

1. Open Business Settings → Sales tab.
2. Set your payment terms default — choose one of the available options.
3. Add the payment methods you accept — Bank account, PayID, PayPal, or Other — and enter the supporting details for each.
4. Select Save.

Note — Changing the default payment term applies across both past and future quote, job, and invoice records. If you want a one-off term on a single record, override it on that record instead of changing the default.

What happens next

Every new invoice carries these terms and payment details by default. You can override them on an individual invoice when needed.

The Sales tab also holds Quote validity period, Quote and invoice reminders, and Reply routing settings — see Configure business settings to set those in the same pass.

Related guides

Complete your business profile, Upload your quote and invoice logo, Create Your First Invoice, Mark an invoice as paid.