The quick answer
Go to Setup > Accounting > Accounting Lists, filter Type to Term, and click New. Choose Standard for dates measured from the transaction date or Date Driven for calendar-day terms. Enter the discount percentage and expiry separately from the net due settings, save, then reopen the term to check the values.
A discount that expires twelve days after an invoice and one that expires on the 12th of a month are different agreements. This example creates one term for each: 3% 12 Net 40 and 3% by 12th Due 25th. It ends with both saved records reopened. The person and operating-company names in the screenshots are fictional example data.
Before you start
Use a role that can create terms in Accounting Lists. The example uses Administrator. Confirm the payment agreement you want to offer before entering the values; the term name is a label, and the fields determine its settings.
For these examples, leave Preferred and Inactive clear. If your account exposes Installment, leave it clear too. Installment terms do not support early-payment discounts. That control was absent from the demonstrated form; its availability depends on the account's enabled features and access.
Navigation and available controls can vary by role and account. The steps below follow the form shown in the walkthrough.
01. Open the Term list
Go to Setup > Accounting > Accounting Lists. Choose Term in the Type filter, then click New. If your account opens Add to Accounting Lists, choose Term there.
02. Name the standard term
Enter 3% 12 Net 40 in Terms and keep Standard selected. This term uses a number of days from the transaction date for both the net due date and the discount deadline.
03. Set the day counts and discount
Enter 40 in Days Till Net Due, 3 in % Discount, and 12 in Days Till Discount Expires. Check each field separately: the forty-day net due period doesn't extend the twelve-day discount window. Keep Preferred and Inactive clear.
Open the arrow beside Save and choose Save & New. This saves the standard term and opens a blank form for the second example.
04. Choose Date Driven
Enter 3% by 12th Due 25th in Terms and select Date Driven. On this form, the calendar fields become editable and the standard day-based fields become unavailable.
05. Enter the calendar settings
Enter the following values in the date-driven fields:
- Day of Month Net Due: 25
- Due Next Month If Within Days: 7
- % Discount: 3
- Day Discount Expires: 12
The seven-day setting controls when the net due date rolls to the following month for transactions close to the 25th. It doesn't set the discount deadline. Day Discount Expires uses a day of the month, so 12 means the 12th rather than twelve days after the transaction.
06. Save the calendar term
Click Save. On the saved record, confirm the term name and all four values: due day 25, rollover 7, discount 3%, and expiry day 12. Leave Preferred and Inactive clear.
07. Reopen both terms
Return to Accounting Lists, filter to Term, and open 3% 12 Net 40. Verify Days Till Net Due 40, % Discount 3, and Days Till Discount Expires 12.
Return to the Term list and reopen 3% by 12th Due 25th. Verify its calendar values again: 25, 7, 3%, and 12, with Preferred and Inactive clear.
Both records now retain the intended settings. The walkthrough verifies term configuration only. Checking calculated due dates, discount dates, and a payment's discount amount belongs to a separate transaction and payment workflow.
Common questions
What does 3% 12 Net 40 mean?
It offers a 3% early-payment discount within twelve days of the transaction date, with the net balance due in forty days. In this example, the fields are Days Till Net Due 40, % Discount 3, and Days Till Discount Expires 12.
Is twelve days the same as the 12th?
No. A standard term counts twelve days from the transaction date. A date-driven term with Day Discount Expires 12 uses the 12th day of the month. Check which type is selected before entering the number.
What does Due Next Month If Within Days 7 do?
It sets a seven-day window before the net due day in which the net due date can roll to the following month. Here the net due day is the 25th. The field controls net due-date rollover; Day Discount Expires controls the discount deadline. This walkthrough saves those settings without demonstrating a transaction's calculated dates.
Does the term name control the discount or due date?
The name is the label users see. NetSuite uses the configured fields. Reopen the record and read those fields rather than relying on a name such as 3% 12 Net 40.
Can installment terms include an early-payment discount?
No. Installment terms do not support early-payment discounts. Enabling the Installments feature can make the Installment control available, but it doesn't add discount support to installment terms. The form shown here didn't include that control.
Does saving a term automatically give a payment discount?
No. Saving the term defines its settings. The transaction's terms and the payment's discount must be checked in their own workflow. No invoice, bill, or payment discount is demonstrated here.