For orders placed with terms as their payment method, the Terms section on the order detail page is where you record payments, forgive balances, and adjust due dates. Managing a terms order is a manual process, with no automatic processing.
Select Actions in the Terms section to open the menu:
Payment…: reduce the order's unpaid amount by drawing from a balance. See Payment source below for details on choosing between the customer's and the organization's balance.
Forgiveness…: reduce the order's unpaid amount without deducting from any balance.
Change Due Date…: update the terms order's due date.
Enable Capital Terms…: convert the order to capital terms. Capital terms orders are allowed by design to exceed a customer's standard credit limit.
Payment Source
The Payment action opens the New Payment modal. The first thing you choose is the source the payment draws from:
Use the customer's balance: draw from the customer's own unapplied balance.
Use the organization's balance: draw from the organization that the customer belongs to. Only shown when the customer is assigned to an organization.
Each option shows its available balance inline. Set the Payment amount, or check Pay maximum to apply the full amount due. Optionally pick a QuickBooks Online account and adjust the Date posted, then select Make Payment.
Refunds on terms orders are handled by the standard Refund action on the order, not from the Terms section.