Set Payment Terms on Invoices
Payment terms specify how and when your customers should pay your invoices. Setting them correctly helps you get paid on time and provides clear instructions to your customers about their payment obligations.
Why Set Payment Terms?
Setting payment terms on your invoices helps you:
- Communicate clearly with customers about when payment is due
- Track overdue invoices automatically based on due dates
- Provide banking details so customers know where to pay
- Speed up payments by making it easy for customers to pay you
- Send payment reminders when invoices become overdue
Good to know: Payment terms are included in the XML of your electronic invoice and transmitted to SDI (Sistema di Interscambio). The payment method and due date appear on the invoice document your customer receives.
How to Set Payment Terms
Step 1: Open the Invoice
Create a new invoice or open a draft invoice you’re working on.
Step 2: Find the Payment Data Card
Look for the Payment card in the middle section of the invoice form. You’ll recognize it by the Euro currency icon (€).
The card shows:
- “Set payment” if no payment terms are configured yet
- The current payment method, IBAN, and due date if already set
Step 3: Click the Payment Card
Click anywhere on the Payment card to open the payment terms panel.
Step 4: Fill in the Payment Details
A panel will open with the following fields:
| Field | Required | Description |
|---|---|---|
| Payment method | Yes | How the customer should pay (Bank transfer, Cash, Card, etc.) |
| Beneficiary | No | Name of the person or company receiving the payment |
| IBAN | No | Bank account number for bank transfers |
| Payment due date | No | When the payment is expected |
Step 5: Close the Panel
Click outside the panel or press the close button. Your payment terms are automatically saved.
Choosing a Payment Method
FatturaSmart supports all official Italian electronic invoice payment methods. The most commonly used are:
| Code | Method | When to use |
|---|---|---|
| MP05 | Bank transfer | Most common for B2B invoices |
| MP01 | Cash | For immediate cash payments |
| MP08 | Payment card | Credit/debit card payments |
| MP19 | SEPA Direct Debit Core | For recurring payments |
See all 23 payment methods
| Code | Italian Name | English Name |
|---|---|---|
| MP01 | Contanti | Cash |
| MP02 | Assegno | Cheque |
| MP03 | Assegno circolare | Circular cheque |
| MP04 | Contanti presso Tesoreria | Cash at Treasury |
| MP05 | Bonifico | Bank transfer |
| MP06 | Vaglia cambiario | Bill of exchange |
| MP07 | Bollettino bancario | Bank slip |
| MP08 | Carta di pagamento | Payment card |
| MP09 | RID | Direct debit (RID) |
| MP10 | RID utenze | RID utilities |
| MP11 | RID veloce | Fast RID |
| MP12 | RIBA | Bank receipt |
| MP13 | MAV | MAV payment |
| MP14 | Quietanza erario | Tax receipt |
| MP15 | Giroconto su conti di contabilità speciale | Special account transfer |
| MP16 | Domiciliazione bancaria | Bank domiciliation |
| MP17 | Domiciliazione postale | Postal domiciliation |
| MP18 | Bollettino di c/c postale | Postal current account slip |
| MP19 | SEPA Direct Debit Core | SEPA Direct Debit Core |
| MP20 | SEPA Direct Debit B2B | SEPA Direct Debit B2B |
| MP21 | SEPA Direct Debit per cassa | SEPA DD cash |
| MP22 | Trattenuta su somme già riscosse | Withholding on collected amounts |
| MP23 | PagoPA | PagoPA |
Setting the Due Date Quickly
FatturaSmart includes a quick date selector to help you set common payment deadlines without manual date entry.
Using the Quick Date Menu
- In the payment panel, look for the magic wand icon (✨) next to the due date field
- Click the icon to open the quick selection menu
- Choose your preferred payment deadline
Available Quick Options
| Option | Meaning | Example (invoice date: January 15) |
|---|---|---|
| 30 GG | 30 days from invoice date | February 14 |
| 30 GG DFFM | 30 days, end of following month | February 28 |
| 60 GG | 60 days from invoice date | March 16 |
| 60 GG DFFM | 60 days, end of following month | March 31 |
| 90 GG | 90 days from invoice date | April 15 |
| 90 GG DFFM | 90 days, end of following month | April 30 |
| 120 GG | 120 days from invoice date | May 15 |
| 120 GG DFFM | 120 days, end of following month | May 31 |
What does “DFFM” mean? DFFM stands for “Dal Fine del Mese Fattura” (From End of Invoice Month). Instead of counting days from the invoice date, the calculation starts from the last day of the invoice month. This is common in Italian commercial practice.
Manual Date Entry
You can also enter any date manually by clicking directly in the date field and using the date picker.
Adding Banking Details
If you’re requesting payment by bank transfer, add your banking details to make it easy for customers to pay.
Fields for Banking Details
| Field | Description | Example |
|---|---|---|
| Beneficiary | The name on the bank account | Mario Rossi SRL |
| IBAN | Your full IBAN number | IT60X0542811101000000123456 |
IBAN format: Enter the IBAN without spaces. FatturaSmart automatically validates the format and won’t accept invalid IBANs.
Setting Default Banking Details
If you always use the same bank account, you can save your banking details in your profile settings so they’re automatically filled in for new invoices.
To set defaults:
- Go to Settings in the side menu
- Click Payment Methods
- Add your default payment method with IBAN and beneficiary
For more details, go to Settings > Payment Methods in the side menu.
Validation Rules
FatturaSmart validates your payment terms to ensure they’re correct:
| Rule | Description |
|---|---|
| Payment method required | You must select a payment method |
| Due date validation | The due date cannot be before the invoice date |
| Beneficiary length | Maximum 200 characters |
| IBAN format | Must be a valid IBAN format without spaces |
Due date error: If you see an error about the due date, check that it’s not set before the invoice date. For example, if your invoice date is March 15, the due date cannot be March 10.
What Your Customer Sees
When you set payment terms, they appear on the invoice document:
- Payment method: Shown as the official Italian code description
- Due date: Displayed in the payment section
- IBAN and Beneficiary: Included in the payment details
This information is also transmitted in the XML file to SDI, making it part of the official invoice record.
Summary Card Display
After setting payment terms, the Payment card on your invoice form shows a summary:
- Payment method: e.g., “Bank transfer” or “Cash”
- IBAN: If entered, shows the account number
- Due date: e.g., “Due date: 15/03/2025”
Click the card at any time to modify these details.
Frequently Asked Questions
Are payment terms mandatory?
The payment method is required to create a valid electronic invoice. The due date, beneficiary, and IBAN are optional but recommended for bank transfer payments.
Can I change payment terms after sending the invoice?
No. Once an invoice is sent to SDI, it cannot be modified. If you need to change payment terms, you must issue a credit note and create a new invoice with the correct terms.
What if my customer pays late?
FatturaSmart tracks payment status and shows overdue days on unpaid invoices. You can also enable automatic payment reminders in the client settings to notify customers of overdue invoices.
Can I set different payment terms for different customers?
Yes. Each invoice has its own payment terms. You can set different terms for each invoice based on your agreements with each customer.
What’s the difference between payment terms and recording a payment?
- Payment terms = what you put ON the invoice (how and when to pay)
- Recording a payment = what you do AFTER receiving money (tracking collections)
For recording payments, see: Managing Payment Collections
Can I set payment in installments?
The current version of FatturaSmart uses “full payment” (TP02) as the default payment condition. For complex installment scenarios, contact support.
Quick Summary
- Open the invoice
- Click the Payment card (€ icon)
- Select a payment method
- Set the due date (use the ✨ icon for quick options)
- Add IBAN and beneficiary for bank transfers
- Close the panel - settings are saved automatically
Need Help?
If you have questions about payment terms:
- WhatsApp: +39 351 410 2536
- Email: info@fatturasmart.com
We respond personally, no bots!
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