How to Configure Tax Rates and Payment Terms

3 min read
Feature: Terms

The Billing Settings panel configures tax rates, net payment terms, and invoicing defaults. Setting up these options ensures consistency across billing and invoice generation.

Business Outcome
Consistent tax calculations and clear payment terms reduce billing errors and speed up payment collection.

Step-by-Step Walkthrough

1

Open Billing Settings

From the administration sidebar, navigate to Settings and click on Billing & Taxes.

2

Configure Default Tax Rates

Click Add Tax Rate. Enter a tax description and tax percentage. Map the tax rate to your accounting software.

Field Requirement Purpose / Details
Tax Description Required Label shown on invoices (e.g. 'State Sales Tax').
Tax Percentage Required Numeric tax rate (e.g. '6.25').
3

Set Default Payment Terms

Choose the default payment terms for invoices (e.g. Due on Receipt, Net 15, Net 30). This calculates the due date.

Field Requirement Purpose / Details
Default Net Terms Required Number of days allowed for payment.
4

Configure Late Fee Rules

Enable late fee options to apply interest or fees to overdue invoices after due dates.

Field Requirement Purpose / Details
Late Fee Type Optional Percentage of balance or flat fee.
5

Save Billing Defaults

Click Save defaults. This applies the settings to all new quotes and invoices created.

Validation Rules

To keep operations reliable, Service Opus enforces the following rules for this workflow:

  • Tax Limit Check: Tax percentages must be greater than or equal to 0% and cannot exceed 100%.
  • Net Term Limits: Payment terms must specify positive day counts.
Important Rule
Updating tax rates does not affect existing invoices. Open quotes will request updating to active rates before completion.

What's Next?

Once you finish this task, continue with these related workflows:

Ready to try this workflow?

Use the walkthrough to evaluate the workflow, then test it in Service Opus with real scheduling, quoting, invoicing, and customer data.