How do you add a new Customer and set their payment terms in QuickBooks Online?

• A. Add a new Customer and assign Terms in the Tax Settings.
• B. Add New Customer, fill in contact details, and set Terms on the Customer record to define payment timing.
• C. Create a Customer and set Terms on the Company Settings.
• D. Add New Customer and set Terms on the Product/Service item.

Answer: (B)

Payment terms are stored on the customer’s profile, so you set them there to define when their invoices are due. To add a new customer in QuickBooks Online, go to Sales > Customers and choose New Customer. Enter the contact details, then set the Terms on that Customer record to specify the payment timing (for example Net 30). This makes the terms specific to that customer and applies when you create invoices for them.

Terms are not configured in Tax Settings or Company Settings, and they aren’t applied to Product/Service items, so those options wouldn’t achieve setting a customer’s payment timing.