# BT-20 Payment Terms Textual description of the payment terms and conditions. This field provides detailed information about when and how payment should be made, including discounts, penalties, and specific instructions. > BT-20 (Payment terms) holds free-text terms such as the net due period or early-payment discount. Optional under EN 16931. In German invoices under XRechnung, cash discount (Skonto) should be expressed here in the defined structured text syntax so it can be parsed (BR-DE-18). Example: #SKONTO#TAGE=14#PROZENT=2.00#. > > BT-20 · EN 16931 / XRechnung 3.x ## BT Reference Card Canonical EN 16931 / XRechnung facts for this business term — citable from this anchor. - **BT code**: BT-20 - **Name**: Payment Terms - **Cardinality**: Optional (O) - **Business group**: Document - **Data type**: Text - **Example value**: #SKONTO#TAGE=14#PROZENT=2.00# - **Common error**: BR-DE-18 (warning): cash-discount (Skonto) terms in BT-20 should follow the XRechnung structured text pattern (e.g. #SKONTO#TAGE=14#PROZENT=2.00#); free prose such as "2% within 14 days" cannot be evaluated automatically and is flagged. - **XRechnung note**: XRechnung expects cash-discount (Skonto) terms carried in BT-20 to follow a defined structured text format (e.g. #SKONTO#TAGE=14#PROZENT=2.00#) so the discount can be evaluated automatically; free prose alone does not convey Skonto in a machine-readable way. ## Quick answer Textual description of the payment terms and conditions. This field provides detailed information about when and how payment should be made, including discounts, penalties, and specific instructions. > **Delivery and payment**: Delivery dates, payment means, and the operational context around settlement. - validate - convert ## In plain language Textual description of the payment terms and conditions. This field provides detailed information about when and how payment should be made, including discounts, penalties, and specific instructions. Textual description of the payment terms and conditions. This field provides detailed information about when and how payment should be made, including discounts, penalties, and specific instructions. Critical for contract compliance, payment processing automation, and establishing clear expectations between trading partners. Helps prevent payment disputes and enables automated payment processing. ## What you usually enter here Free text with payment instructions and conditions Typical valid values include: Payment due within 30 days of invoice date, Zahlung innerhalb von 14 Tagen mit 2% Skonto, netto 30 Tage, Net 30 days, 2% discount if paid within 10 days, Zahlung bei Lieferung (Cash on Delivery) Optional but recommended for commercial transactions to establish legally binding payment conditions and support dispute resolution processes ## What goes wrong often Avoid values like: , Payment, See contract, As agreed Relevant rule codes: BR-CO-25 ## Examples in context Critical for contract compliance, payment processing automation, and establishing clear expectations between trading partners. Helps prevent payment disputes and enables automated payment processing. Optional but recommended for commercial transactions to establish legally binding payment conditions and support dispute resolution processes ## Valid Examples - Payment due within 30 days of invoice date - Zahlung innerhalb von 14 Tagen mit 2% Skonto, netto 30 Tage - Net 30 days, 2% discount if paid within 10 days - Zahlung bei Lieferung (Cash on Delivery) - Payment by bank transfer within 60 days ## Invalid Examples - Payment - See contract - As agreed ## Related Fields Critical for contract compliance, payment processing automation, and establishing clear expectations between trading partners. Helps prevent payment disputes and enables automated payment processing. - [BT-9 Payment Due Date](/resources/xrechnung/bt-9-payment-due-date) - [BT-81 Payment means type code](/resources/xrechnung/bt-81-payment-means-type-code) - [BT-82 Payment means text](/resources/xrechnung/bt-82-payment-means-text) ## XML mapping and field facts Open the technical reference if you need XML paths, validator rule codes, legal wording, or schema-specific mapping details. ### Field ID: BT-20 ### Data Type: text ### Cardinality: 0..1 ### Requirement: Optional ### Max Length: 500 characters ### Since Version: Optional ## XML Implementation ### UBL 2.1 Syntax ``` /Invoice/cac:PaymentTerms/cbc:Note ``` ### CII (UN/CEFACT) Syntax ``` /CrossIndustryInvoice/SupplyChainTradeTransaction/ApplicableHeaderTradeSettlement/ram:SpecifiedTradePaymentTerms/ram:Description ``` ## Validation Rules ### BR-CO-25 BR-CO-25 ## Why the standard cares about this field ### Business Context Critical for contract compliance, payment processing automation, and establishing clear expectations between trading partners. Helps prevent payment disputes and enables automated payment processing. ### Legal Requirement Optional but recommended for commercial transactions to establish legally binding payment conditions and support dispute resolution processes ## FAQ ### What should be included in payment terms? Payment terms should include payment deadline, accepted payment methods, early payment discounts, late payment penalties, and any special conditions or instructions. ### Can payment terms override the payment due date? Payment terms provide context and details, but the payment due date (BT-9) takes precedence for automated processing. Both fields should be consistent. ### Are early payment discounts common in German business? Yes, early payment discounts (Skonto) are very common in German business, typically 2-3% for payment within 8-14 days. This should be clearly stated in payment terms. ### How do payment terms affect cash flow management? Clear payment terms enable better cash flow forecasting, reduce payment delays, and allow for strategic use of early payment discounts to improve working capital. ## Official sources and tools - [KoSIT Validator](https://erechnungsvalidator.service-bw.de/) - [Invoice Converter](/pdf-to-xrechnung) - [XRechnung Standard](https://xeinkauf.de/xrechnung/) - [XRechnung Standard: BT-20 Payment Terms](https://xeinkauf.de/xrechnung/faq) - [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)