Once the customer is accepted on board, which may include certain information exchanges and other documentation, the crucial decision of the payment terms to extend the customer becomes imminent when the first transaction is processed.
You could choose to have default payment terms for all customers and let this be the first payment term all customers are granted when they become a trading partner in the system. The credit and collections group may choose to change the payment term assigned based on recommendations from credit rating agencies that provide more current marker information about the customer.
Payment terms on a customer are defaulted from the following places:
Agreement payment term
Customer ship to payment term
Customer invoice to payment term
Customer payment term
Price list payment term
Defaulting rules are defined in the sales order. The initiating transaction affects an activity which in turn involves a payment term. This can be changed to suit the business needs...