Understanding the calculation of due dates


Payment terms provide precise control over third-party payments. For this, their configuration allows you to adapt the payment due dates to your cash flow constraints.

The calculation of the due dates takes into account the invoice issue date and the values ​​of the Days from invoice issue date and Payment days fields.

Days from invoice issue date

In this area, you enter the number of days to take into account from the invoice issue date; this will calculate the theoretical due date.

– Invoice issue date: May 05.
– Days from invoice issue date: 0
> The theoretical due date is May 05. In the absence of an advanced configuration, the payment is expected on May 05.

– Invoice issue date: May 13.
– Days from invoice issue date: 15
> The theoretical due date is May 28. In the absence of an advanced configuration, the payment is expected on May 28.

– Invoice issue date: May 02.
– Days from invoice issue date: 15
> The theoretical due date is May 17. In the absence of an advanced configuration, the payment is expected on May 17.

In these examples, the theoretical due dates are the same as the actual due dates on which payments will be made.
You can, in addition, specify payment constraints on specific days using the Advanced configuration.

Advanced > payment days

Use the Advanced configuration to create custom rules for actual due dates, that limit payments to specific days. This can be useful when you need to set specific rules for payments, such as strict deadlines or specific business days.

To configure these specific payment days, use the Advanced configuration.

In the Payment days zone, you determine one or more payment days:

  • Adding one or more payment days
    First, you determine one or more payment days.
    The actual due date then corresponds to the theoretical due date forced on the earliest payment day chosen.
    During this calculation, the application takes into account the number of actual days in the calendar.

 

– Invoice issue date: May 05.
– Days from invoice issue date: 0
– Payment days: 20 15 10
> The theoretical due date is May 05. The actual due date is forced to the day closest to May 05: May 10.

– Invoice issue date: May 13.
– Days from invoice issue date: 15
– Payment days: 20 15 10
> The theoretical due date is May 28. The actual due date is forced to the day closest to May 28: May 20.

– Invoice issue date: May 02.
– Days from invoice issue date: 15
– Payment days: 20 15 10
> The theoretical due date is May 17. The actual due date is forced to the day closest to May 17: here May 15.

  • Adding an end of month condition
    For this you need to check End of month in the list .
    The End of month condition can be combined with one or more payment days (see examples C-2 and C-3).
    The actual due date is then the last day of the month in the theoretical due date.
    During this calculation, the application takes into account the number of actual days in the calendar.

 

– Invoice issue date: May 05.
– Days from invoice issue date: 0
– Payment days: End of month
> The theoretical due date is May 05. The actual due date is forced to the end of May: May 31.

– Invoice issue date: May 13.
– Days from invoice issue date: 15
– Payment days: End of month
> The theoretical due date is May 28. The actual due date is forced to the end of May: May 31.

– Invoice issue date: May 17.
– Days from invoice issue date: 15
– Payment days: End of month
> The theoretical due date is June 01. The actual due date is forced to the end of June: June 30.

– Invoice issue date: May 02.
– Days from invoice issue date: 15
– Payment days: End of month 20 15 10
> The theoretical due date is May 17. The actual due date is forced to the day closest to the last day of May: May 20.

– Invoice issue date: May 17.
– Days from invoice issue date: 15
– Payment days: End of month 20 15 10
> The theoretical due date is June 01. The actual due date is forced to the day closest to the last day of June: June 30.


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