Magnifi Help – How to Set Collection and Compliance Terms

Payment Terms - Set & Manage

To explain how to set and manage the terms (customer receipts and supplier payments) and compliance terms (GST, PAYGW, Superannuation, Payroll Tax) in Magnifi so cashflow projections reflect the correct timing.


When to Use

  • When linking Profit & Loss accounts to Balance Sheet accounts for receivables or payables.

  • When specifying the timing of customer receipts or supplier payments.

  • When setting the payment schedule for compliance obligations such as GST, PAYGW, Superannuation, and Payroll Tax.

  • When adjusting default terms to reflect your business’s actual payment patterns.


How To

Enter Terms (Receivables & Payables)

  1. Go to Chart of Accounts.

  2. If a Profit & Loss account is linked to a Balance Sheet account with category Receivables or Payables, a Terms pick list will appear.

  3. Select one of the options:

    • Immediate – paid in the same month the Profit & Loss value is entered.

    • 30 Days – paid the month after the Profit & Loss value is entered.

    • 60 Days – paid two months after the Profit & Loss value is entered.

    • 90 Days – paid three months after the Profit & Loss value is entered.

    • % Split – allocate percentages of the monthly balance across collection months.

      • Example: 20% Immediate, 60% in 30 Days, 20% in 60 Days.

      • Once saved, the %’s will appear under Terms and can be edited by double-clicking the value.

  4. If no selection is made, Magnifi defaults to 30 days for both receivables and payables.


Enter Compliance Terms (GST, PAYGW, Super, Payroll Tax)

  1. Go to Cashflow > Compliance Terms.

  2. For each compliance item, choose one of the following:

    • Monthly – paid in the month after incurred.

    • Quarterly – paid in the month immediately after the quarter.

    • Quarterly + 1 – paid in the second month after the quarter (common for small businesses with a one-month extension).

    • Immediate – paid in the same month incurred (e.g., large businesses paying PAYGW weekly).

    • No Payment / Manual – specify your own timing.

  3. You can override any month by clicking into the cell. It will display in red to show it differs from the default.

  4. Magnifi remembers changes for future years.

    • Example: If GST for Dec 2025 is paid in Feb 2026, Magnifi automatically sets Dec 2026 to pay in Feb 2027.

  5. Ensure GST and PAYGW accounts are correctly tagged with their Account Type under the Balance Sheet tab.


Special Cases - Examples 

Receivable terms differ to default terms

If your standard terms are 30 days but you expect a client to pay $100,000 upfront:

  • Add a Projection under Accounts Receivable.

    • Enter –$100,000 in Month 1 (increasing collections by $100,000).

    • Enter + $100,000 in Month 2 (reducing collections, as cash has been brought forward).

ATO payment arrangement

  • Add a Projection under the relevant Balance Sheet account (e.g., GST or the account holding the ATO debt).

  • Enter the agreed repayment schedule against that Projection.

Workers compensation

Magnifi projects workers compensation monthly under Labour Drivers as a % of wages. To change timing:

  1. Adjust the monthly % in Labour Drivers, or

  2. Remove the % and enter monthly projections directly, or

  3. Accrue to a Balance Sheet account (e.g., Sundry Creditors), add a Projection against this account, and allocate payments.

Asset purchases or other Balance Sheet outflows

By default, when you add a Projection linked to the bank account, Magnifi records the inflow/outflow in the month incurred. To enter a payment at a future point in time you can do the following:

  • Example: Equipment purchased with 30-day terms. To show delayed payment:

    • Add a Projection “New Equipment” under Fixed Assets linked to Accounts Payable.

    • Then add a Projection under Accounts Payable linked to the Bank Account to show the later cash payment.


Tips / FAQs

  • What happens if I don’t set Terms?
    Magnifi defaults to 30 days for receivables and payables.

  • Can I set weekly payment terms?
    No. Magnifi projects monthly. Use % Split to approximate shorter cycles (e.g., 50% Immediate, 50% 30 Days).