# How terms work

Terms > The basics · How it works · https://vendordue.com/docs/how-terms-work

**In short:** A vendor's terms are four answers: their consignor rate (what they earn), holds (what a sale must clear first), schedule (when they're paid) and agreement (how long it runs). You set them once for the shop, and give a vendor their own only where they differ.

Who: Admin. Where: Settings > Terms.

Every deal you have with a vendor answers the same four questions. In VendorDue those answers are their **terms**, and **Settings > Terms** reads them back to you as sentences you can change by pressing the underlined words.

## The four answers

| Part | Answers | Reads like |
| --- | --- | --- |
| **Consignor rate** | What does the vendor earn from a sale? | Alder Ceramics earns 60% of revenue on every sale. |
| **Holds** | What must a sale clear before it can be paid? | Hold each sale until it ships, then for a 14-day return window. No minimum payout. |
| **Schedule** | When is the vendor paid? | Pay vendors every month on the 1st, for sales up to the day before. |
| **Agreement** | How long does the deal run, and what happens at the end? | Each agreement runs 90 days from the day you confirm a vendor, then we ask you. |

Charges, like booth rent, sit beside the terms: money a vendor owes you rather than something they earn. See [Charges and bills](https://vendordue.com/docs/charges-and-bills).

## The shop's, and a vendor's own

You set the four answers once for the shop. These are your shop-wide terms, and every vendor you put on them follows them, including every change you make later.

A vendor who's different gets their own answer for just that part. Each part is separate: Quillfield Goods can have their own consignor rate of 90% and still follow your schedule and holds. Their Terms tab says **Currently using: shop-wide** above each part they share with the shop. See [Shop-wide terms and a vendor's own](https://vendordue.com/docs/shop-wide-terms).

## See it worked through

Under the sentences, an (example) runs a $120.00 sale made today through your terms, so you can see what your answers mean before any real sale does:

| Sold | Ships | Scheduled | Lands in To pay | Paid |
| --- | --- | --- | --- | --- |
| Tue, 6 Oct | Wed, 7 Oct | Wed, 21 Oct | Sun, 1 Nov | when you pay it |

On a vendor's Terms tab it also says what that sale would pay them: "A $120.00 USD sale today pays Alder Ceramics $72.00 USD on Sun, 1 Nov."

## When a change starts

A change to the consignor rate applies from the next sale. Sales already made keep the rate they were worked out with.

A change to the holds or the schedule asks when it starts, before you save it. The bar under **Unsaved changes** says:

- **Starts:** tomorrow, unless you pick another day.
- What happens to sales that already have a pay day. They keep it, and only later sales follow the new answer. Tick **Move them too** to move them now as well, which starts the change today.

**Discard** drops the change; **Save** keeps it. Every saved change is listed under **Changes to the holds and schedule**, with the day it started.

> **For your accountant:** Terms are effective-dated. A sale is worked out on the consignor rate in force on the day it sold, and that working is kept with the sale. A payout that has landed is never recalculated.

## How payouts behave

Five rules apply whatever your terms say. They're listed under **How payouts behave** in **Settings > Terms**:

- **When a payout lands:** at the start of the day in your shop's time zone.
- **If refunds or charges beat sales:** nothing lands for that vendor, and the difference comes off their next payout.
- **Landing:** fixes the amounts and shows each vendor their payout.
- **Holding one vendor back:** hold their payouts from their Summary. Their sales keep their dates, and anything past its date lands when you release the hold.
- **Paying part of it:** allowed. The rest stays in To pay.

## Common questions

**Where do I change my terms?** In Settings › Terms for the whole shop, or on a vendor's Terms tab for them alone. Press the underlined words in each sentence.

**If I change the shop-wide consignor rate, do past sales change?** No. Sales already made keep the rate they were worked out with. The new rate applies from the next sale.

**Can a vendor follow the shop-wide schedule but have their own rate?** Yes. Each part of the terms is separate. A vendor can have their own consignor rate and follow every other part from the shop.

**What do vendors see of their terms?** Their own terms, in their words: their consignor rate, when they're paid and what a sale must clear first, and their agreement.

Checked against VendorDue on 2026-10-06.