AP Payment Terms

[aanchan_001]

Hi We have some payment terms to be set in AP, can someone help me on this

1.25% advance with PO, 35% on completion of delivery at site, 30% on virtual completion balance 10% (after successful installation) against the unconditional performance Bank guarantee of 10% of total purchase order value valid for 12 months from the date of delivery

2. 50% against delivery of material at site and acceptance/approval of our Engg Dept. 45% against completion of work, site-wise and against approval of our Engineering Dept. 5% after 3-months from date of handing over of site to us.

3. 95% against running bills duly certified from our Engineering Dept. 5% to be paid after 12 months from the date of completion of Civil work & acceptance/approval of our Engineering dept.

Mohan

[hiszaki]

Hi Mohan

I would like to ask you, the time between each process (like delivery at site, completion of work, ...) is a different or a fixed time?

If the time are fixed then you can handle the payment terms according to your time.

Thanks
Hisham