How are payment date and due date calculated?

Payment date and due date are calculated based on your site's configuration and the payment terms on the invoice.

The payment terms on the invoice and the payment policy configuration for your site determine the payment date and the due date for a payment request. The payment date determines when the payment is processed, taking into account any available discounts, and the due date determines the last day the payment can be made without becoming overdue.

The following settings control payment date and due date calculations:

• Your payment policy configuration: take maximum discount, take no discount, or take applicable discount
• Your site's customizations, which might overwrite the default use of the invoice reconciliation approval date as the effective date for the payment and due date calculations

The following examples demonstrate how the due date and payment date are calculated based on the payment terms and system configurations.

Example

• No Discount, Effective Date is Approval Date
• Payment terms are Net 30, no discount, and the invoice reconciliation is approved on June 1.
• In this example, the payment date and the due date are set to July 1.

Example

• Take Maximum Discount, Effective Date is Approval Date
• The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice reconciliation is approved on June 1.
• In this example, the due date is set to July 1, the payment date is June 16, and the discount applied to the payment is 3%.

Example

• Take Applicable Discount, Effective Date is Invoice Date
• The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. The invoice reconciliation is approved on June 1.
• In this example, the due date is July 1, the payment date is June 4, and the discount applied to the payment is 2%.

Example

• Take No Discount, Effective Date is Approval Date
• The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. The invoice reconciliation is approved on June 1.
• In this example, the due date and the payment date are set to July 1 and no discount is applied.

Example

• Take No Discount, Effective Date is Invoice Date
• The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. The invoice reconciliation is approved on June 1.
• In this example, the due date and the payment date is set to June 14 and no discount is applied.

For more information on payment processes, see the Invoicing and Payment Process Guide.

If the invoice do not have payment terms, the Net Due Date will show as null.

Invoicing