Payment on account is off by default. You can approve it for a single customer, a company or a customer group. Each value (allowed, term, credit limit, purchase order, e-mail for e-invoices) is taken from the first level that sets it, and an empty field inherits.
Before you start
- payment on account set up with the default terms (first steps),
- a list of the customers, companies or groups you want to approve.
1. Who wins
The order of decision is always the same: the customer, then the company, then the customer group rule, and finally the shop defaults. If nobody says yes, the answer is no. Guests never pay on account.
2. Approve a single customer
Customers › Customers
Open the customer and choose the Payment terms tab on the left (you need the permission to edit the payment terms of customers and companies).
What applies now (read only): a summary of what actually applies to this customer across all levels, and how much is open and overdue and what the limit is.
Pay on account: Inherit (the company or the customer group decides; if they say nothing, no), Yes or No.
Term (days): empty inherits.
Credit limit (base currency): empty inherits. The limit is hard. To take every limit away from the customer, set No credit limit to Yes; a limit you entered is then ignored.
Purchase order number required: inherit, yes or no.
E-mail for e-invoices and reminders: reminders go to this address as well as to the customer.
Internal note: for you only.
Click Save Customer. The What applies now line refreshes after saving.
3. Approve a company
Customers › Companies
If the Company accounts extension is installed, editing a company has the same Payment terms tab with the same fields. Approving a company applies to all its users, and the credit limit is one limit for the whole company: what all its users owe is added together. Without that extension every customer stands alone, and customer groups keep working.
4. Rules by customer group
Stores › Configuration › Magelan › Payment terms
In the Credit limit group there is the field Rules by customer group. Click Add rule and for each group fill in the columns Customer group, Pay on account, Term (days), Credit limit and Purchase order required. In the credit column a number is the limit, none is no limit and empty takes the default credit limit. Empty cells inherit.
The same screen holds Default credit limit (base currency): it applies to approved customers whose own terms leave the limit empty; empty means no limit.
Common problems
The Payment terms tab is missing on the customer
Check the role permission "Edit payment terms of customers and companies".
The customer is approved but does not see the method
Check the line "What applies now". Common reasons: the customer is explicitly set to No, the method is not enabled under Payment Methods, or the credit limit is already used up.