> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/syntax/timing-syntax/payment-terms-ui.md).

# Payment Terms UI

This article explains the Payment Terms UI in the Timing modal.

You will learn:

* Where to set payment terms.
* What the main payment term options mean.
* How payment terms feed into receivables, payables and cashflow.

{% hint style="info" %}
Payment terms define the gap between accrual and cash movement.
{% endhint %}

{% stepper %}
{% step %}

### Where payment terms are set

Payment terms are configured in:

* The **Timing modal** for each variable.
* Presets that include payment profiles.
* Occasionally import mappings where default terms are applied.

The payment terms section is usually clearly labelled and sits close to delay settings.
{% endstep %}

{% step %}

### Payment term options

Common options include:

* **Immediate**
  * Cash and accrual occur in the same period.
  * No receivable or payable is created.
* **Fixed number of days**
  * For example 7 days, 14 days, 30 days, 60 days.
  * The engine converts days into the appropriate period offset based on model granularity.
* **Fixed number of months**
  * For example 1 month, 2 months, 3 months.
  * Cash occurs the specified number of periods after accrual.
* **Custom terms**
  * Can represent more complex business rules through combinations of delay and schedule settings.

These options are chosen via dropdowns and numeric input fields.
{% endstep %}

{% step %}

### How payment terms interact with variables

When you set payment terms for a variable:

* The variable's accrual still happens according to its own schedule.
* Cashflows are shifted according to the payment terms.
* The difference between accrual and cash is recorded as Accounts Receivable or Accounts Payable (or related payables for staff and tax).

This affects both working capital and the Cashflow Statement.
{% endstep %}

{% step %}

### Validating payment terms

To validate payment term configuration:

* Use the **Timing preview** to see how accrual and cash curves differ.
* Inspect the Cashflow Statement to see when receipts or payments land.
* Check the Balance Sheet for sensible receivable and payable balances.

If numbers look too smooth or too volatile, review the payment term settings.
{% endstep %}

{% step %}

### Best practice

Good practice for payment terms includes:

* Matching the terms you set to real contracts or typical behaviour.
* Using consistent defaults for similar customers or suppliers.
* Documenting any unusual terms in variable notes.
* Avoiding unnecessary complexity for items where timing has little impact.

This keeps working capital behaviour predictable and easy to explain.
{% endstep %}
{% endstepper %}

## Related articles

* [Accrual Behaviour](/syntax/timing-syntax/accrual-behaviour.md)
* [Timing Modal Overview](/syntax/timing-syntax/timing-modal-overview.md)
* [Cash Priority Rules](/help/financial-outputs-and-valuation/cash-priority-rules.md)
* [Build an LBO Model](/how-tos/investment-and-transactions/build-an-lbo-model.md)


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