AP Payment Terms
Posted: Wed Oct 07, 2009 1:22 pm
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
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