{"id":73437,"date":"2025-04-28T08:30:27","date_gmt":"2025-04-28T07:30:27","guid":{"rendered":"https:\/\/www.cashontime.com\/en\/?p=73437"},"modified":"2025-04-23T17:46:54","modified_gmt":"2025-04-23T16:46:54","slug":"payment-due-dates","status":"publish","type":"post","link":"https:\/\/www.cashontime.com\/en\/articles\/payment-due-dates\/","title":{"rendered":"Payment due dates: definition, calculation and optimization"},"content":{"rendered":"
The payment due date<\/strong> is the deadline for payment of an invoice<\/strong>. It occurs at the end of the payment period specified on the invoice. This date plays a decisive role in commercial transactions. It provides a framework for relations between your company and its customers<\/strong>, specifying the deadline for payment of amounts due. Only when this date has passed, and no payment has been made, is the invoice considered overdue. Furthermore, agreeing to a relatively long payment deadline is often appreciated by customers, who see it as a commercial gesture.<\/div>\n
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What\u2019s more, knowing the due date of invoices enables you to manage your accounts receivable<\/strong><\/a> and take them into account for cash management purposes. The company knows that incoming flows may not arrive until that date. It must therefore have the necessary funds to pay its own invoices by that date. Good payment schedule management<\/strong> therefore has a direct impact on a company\u2019s financial health.<\/div>\n

What is a due date?<\/h2>\n
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The due date is defined as the latest date by which the invoice must be paid<\/strong>. This payment due date therefore determines when the invoice becomes payable, and may therefore be the subject of collection proceedings in the event of non-payment on the due date.<\/p>\n

Including the payment due date<\/strong> on invoices is essential, both for the customer and for the supplier or service provider.<\/p>\n

\"echeanceFrom the customer\u2019s point of view<\/strong>, knowing the payment due date allows him to know until what date he can pay without fear of penalty. He may even be rewarded for early payment, if discounting is applicable to the contract. It also enables him to know when he will record an outflow in his cash flow. So he can anticipate and manage his cash flow more effectively<\/strong>. They can even negotiate payment terms in advance, in line with their sales cycle, to reduce cash flow pressures.<\/p>\n

From the supplier\u2019s or service provider\u2019s point of view<\/strong>, knowing the due date is just as important. It enables them to anticipate incoming cash flows<\/strong>, as well as to set up alerts in the event of non-payment, so as to rapidly launch the collection procedure and reduce customer risk<\/strong><\/a>. This facilitates cash flow planning.<\/p>\n

To facilitate this management, some companies choose to set up a payment schedule<\/strong><\/a>, which centralizes all due dates for each customer or order. This tool not only gives you a clear view of expected cash receipts over a given period, but also helps you anticipate any cash flow shortfalls<\/strong>. A structured payment schedule makes it easier to plan reminders, adjust payment terms if necessary, and improve communication between accounting and sales teams. It\u2019s a real lever for securing financial flows.<\/p>\n

In addition, negotiating payment terms is part of the commercial negotiation process, which can reward a loyal customer or, on the contrary, punish a customer who is often late with payments.<\/p>\n<\/div>\n

How do I calculate the due date?<\/h2>\n
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The payment deadline and the method of calculating the due date<\/strong> must be specified in the contract and\/or quotation signed by the customer.<\/p>\n

\"dateFor business-to-business transactions, you can determine the payment term that suits you and your customer. However, you must respect the limitations imposed<\/strong> by law. For example, you cannot set a payment term longer than 60 days or 45 days end of month. In addition, several calculation methods can be used. Here\u2019s how it works.<\/p>\n

Good to know<\/strong>: if the last day of the deadline is a public holiday, Saturday or Sunday, the deadline expires at the end of the next working day.<\/p>\n

Payment due date: calculation in net days<\/h3>\n<\/div>\n
This is when the payment due date is expressed in days. For example: 15, 30, 45 or 60 days. The starting point for calculating the due date<\/strong> is the invoice issue date.<\/div>\n

Payment due date: calculation on a fixed date of the month<\/h3>\n
You can also set a fixed payment date<\/strong>. For example, on the 10th or 15th of the month. In this case, no matter how many days pass, payment is due on the set date. So, whether an invoice is issued on February 20 or March 5, it must be paid on the following March 10.<\/div>\n

Payment due date: calculation from month-end<\/h3>\n
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Finally, it is possible to set a payment due date of X days from the end of the month<\/strong>. For example: 30 or 45 days end of month.<\/p>\n

Two calculation methods can then be applied:<\/p>\n