Payment terms define when payment for the sale of grain is due.
Payment terms are specified when creating a new Contract in Contracts (see Create a contract). Setting this correctly is important as this helps you track the payment due date of your deliveries onto a contract.
Any delivery onto a contract that you complete in Deliveries (see Complete a delivery) will automatically show up in Settlements (Invoices), under the Paid & Unpaid section, with its Delivery Payment Due Date automatically indicated, based on the associated Contract’s Payment Terms.
To know the exact date when payment is due, you can use the following table as a guide. Counting starts from the delivery date or when the truck arrives at the destination.
*For end of week payment terms, if the delivery date falls on a Sunday, then counting starts from that Sunday.
Payment term | Delivery Payment Due date |
5 days end of week | * Go to the next Sunday + 5 days |
7 days end of week | * Go to the next Sunday + 7 days |
12 days end of week | * Go to the next Sunday + 12 days |
14 days end of week | * Go to the next Sunday + 14 days |
15 days end of week | * Go to the next Sunday + 15 days |
21 days end of week | * Go to the next Sunday + 21 days |
26 days end of week | * Go to the next Sunday + 26 days |
28 days end of week | * Go to the next Sunday + 28 days |
30 days end of week | * Go to the next Sunday + 30 days |
30 days end of month | Go to the last day of the month + 30 days |
60 days end of month | Go to the last day of the month + 60 days |
Telegraphic transfer | Same day (Delivery date = Payment date) |
2 days telegraphic transfer | Delivery date + 2 days |
3 days telegraphic transfer | Delivery date + 3 days |
2 days from title transfer date | Delivery date + 2 days |
Cash against documents (CAD) | Same day (Delivery date = Payment date) |
Cash on delivery | Same day (Delivery date = Payment date) |
Letter of credit (L/C) | Same day (Delivery date = Payment date) |
Open Account | Same day (Delivery date = Payment date) |
Prepayment | Same day (Delivery date = Payment date) |
As per contract | Same day (Delivery date = Payment date) |
Completion of contract | ‘End of Delivery Date’ on contract = Payment date |
Paypal | Same day (Delivery date = Payment date) |
Example:
Cash on delivery
Delivery made onto contract: 1st Nov 2021 (Monday)
Payment due date for the delivery: 1st Nov 2021
14 Days End of Week
Delivery made onto contract: 1st Nov 2021 (Monday)
Payment due date for the delivery: 7th November (the next Sunday) + 14 days = 21st Nov 2021
30 Days End of Month
Delivery made onto contract: 1st Nov 2021 (Monday)
Payment due date for the delivery: 30th November (last day of the month) + 30 days = 30th Dec 2021