Net-30 Invoicing & Xero Sync for Magento B2B

Net-30 invoicing on Magento: how it works

Magento Open Source can sell on net-30 terms: restrict an on-account payment method to approved trade customer groups, so vetted buyers place orders without paying at checkout, then push each order to Xero as an invoice due on your terms. Retail customers still pay by card as normal; trade accounts buy on account; and because the invoice is raised automatically, the books stay current without anyone rekeying an order.

Terms are the default of B2B. Trade customers expect to raise a purchase order and settle the invoice inside 30, 60 or 90 days — a store that only takes cards at checkout reads as retail, and loses the serious accounts to suppliers who will invoice. The good news is that none of this needs Adobe Commerce or an ERP. Here is the practical setup, end to end.

The two halves of terms-based selling

Selling on terms is two problems wearing one name. The first is checkout: letting an approved buyer complete an order without paying, while everyone else pays up front. The second is accounting: getting an invoice for that order into your accounts package with the right customer, tax and due date, without a human retyping it. Stores that solve only the first half discover the second the hard way — every on-account order becomes a manual bookkeeping job, and the admin quietly eats the margin the trade accounts were supposed to bring.

Setting it up, step by step

1. Create a trade customer group. In the admin, go to Customers → Customer Groups and add a group such as "Trade — Net 30". Customer groups are the gate everything else hangs off: payment methods, pricing, visibility.
2. Treat joining the group as a credit decision. Terms are credit. Vet the account — company details, references where the order values warrant it — then assign the customer to the group under Customers → All Customers. Decide the ceiling at the same time — how much unpaid exposure you will carry per account — and review it as the trading history builds. Nobody should end up on terms by accident, and nobody should stay on generous terms by default.
3. Offer an on-account payment method to that group only. Approved buyers see an on-account or purchase-order option at checkout and complete the order without paying; every other customer sees the standard card methods. Restricting a payment method to specific customer groups is the piece Magento Open Source does not give you out of the box — it is part of what the B2B Suite for Magento adds, alongside quoting and gated pricing.
4. Put the terms on the invoice, not the checkout. Net-30 is a property of the invoice: raise it with payment due 30 days out (or 60, or 90 for the accounts that earn it) and the due date does the enforcing, with your accounts package tracking who is inside and outside terms.
5. Push each order into Xero automatically. This is where terms selling usually breaks — someone rekeying every order into the accounting system. Instead, Xero Connect for Magento 2 pushes each order to Xero as an invoice the moment it is placed: the customer matched or created by email, tax handled by your Xero sales account, and the Xero invoice ID recorded against the order so nothing is ever sent twice.
6. Let Xero handle reminders and reconciliation. With invoices flowing in automatically, reconciling incoming payments is a review rather than a data-entry marathon, and Xero's own invoice reminders do the polite chasing. Month-end stops being a fire drill.

What this looks like day to day

A buyer at an approved account signs in, places an order against their purchase order, and gets on with their day. The order lands in Magento like any other; the invoice lands in Xero due in 30 days; your bookkeeper sees a ledger that is already up to date. When payment arrives it is reconciled in Xero as normal. Nobody retyped anything, and the debtor report is real.

Why offer terms at all

Because the accounts you most want expect them. Offering terms is what wins and keeps trade business; automating the invoice is what stops the paperwork eating the margin that business brings. Together they turn "we would love to sell on account but the admin kills us" into a clean, repeatable workflow — one that scales with order volume instead of with headcount.

Where this fits in a wider B2B setup

Terms-based checkout pairs naturally with the rest of the trade toolkit: a quote-to-order workflow for negotiated orders that convert into on-account purchases, and the full picture of running trade accounts without Adobe Commerce licensing is in Magento B2B without Adobe Commerce. The mechanics of the accounting sync itself — contact matching, tax and ledger mapping, sync logs — are covered in Magento 2 Xero integration.

Both halves ship together: the B2B Suite covers the checkout side, Xero Connect covers the accounting side, and both are included in the AgenticEcom Suite.

FAQ

Can Magento offer net-30 payment terms?

Yes. Restrict an on-account or purchase-order payment method to approved trade customer groups, so vetted buyers check out without paying immediately and settle the invoice within your stated terms. Everyone outside those groups continues to pay by card at checkout.

How do Magento orders become Xero invoices?

Through an integration such as Xero Connect, which pushes each order to Xero as an invoice automatically — the customer matched or created by email, tax applied through your Xero sales account, and each order sent exactly once. No rekeying, no duplicates.

Do I need Adobe Commerce or an ERP for B2B invoicing?

For most merchants, no. An on-account payment method gated by customer group, plus automatic Xero invoicing, covers terms-based selling and clean reconciliation on Magento Open Source — without the cost and complexity of an ERP.

What stops an unvetted customer buying on account?

Customer groups. The on-account method is only visible to groups you approve, and you assign customers to those groups manually after vetting. A new registration lands in the default group and sees card payment only.