This article aims to provide comprehensive understanding of the functionality of the due date and anticipated payment date for purchase invoices and credit notes.
When you enter a purchase ledger invoice or a purchase invoice registry invoice or credit note, you may specify a due date and an anticipated payment date. These dates are automatically set by the system based on the supplier terms.
Due Days Method and number of Due Days represents the number of days credit offered to you by your supplier, and is based on the supplier terms Due Days and Due Days Method.
Anticipated Days Method and number of Anticipated Payment Days represents the number of days credit you anticipate taking from the supplier.
The Anticipated Payment Date is calculated from the Anticipated Days field in the supplier terms. This can be set to be calculated based on the invoice date or the due date. The anticipated receipts date = invoice date or due date + anticipated days.
Example:
Supplier may specify that payment is due of the month following the invoice date.
You may then anticipate paying that invoice within 10 days of it becoming due.
However, your supplier may specify that payment should be made within 60 days of the invoice date, while you anticipate paying that invoice within 45 days of the invoice date.
The Anticipated Payment Date is calculated from the Anticipated Days field in the Supplier Terms. This can be set to be calculated based on the invoice date or the due date.
Anticipated Payment Date = Invoice date or Due Date + Anticipated Days. You can overwrite both days manually.
Due Date is calculated based on the supplier terms Due Days and Due Days Method:
Due Days Method | Calculation | Example |
x Days from Invoice | Invoice date + supplier terms Due Days. |
|
End of Following Month | Last day of the month following the invoice month. |
|
x Day of Following Month | Specified day of the month following the invoice month. |
|
x Days After End of Month | Specified number of days after the end of the month that the invoice date falls into. |
|