In Peakflo you have the flexibility to automatically calculate due date for bills and vendor invoices based on terms of payment, issue date of vendor invoice, and receipt date of bill. To configure due date calculation as per your business needs contact support@peakflo.co
Table of Content
- How is due date calculated based on terms of payment and bill receipt date?
- How is due date calculated based on terms of payment and vendor invoice issue date?
How is due date calculated based on terms of payment and bill receipt date?
When creating or editing a bill, from the Receipt Note, bill table view, or OCR the due date will be calculated as follows:
Due Date = Receipt Date + Longest Terms of Payment of the Purchase Orders linked to the bill.
Receipt date refers to the date goods or services were received.
Terms of Payment is calculated by subtracting the due date mentioned on the purchase order from the date the purchase order is created.
Longest Terms of Payment of the Purchase Orders mean the system will use the highest value of terms of payment from all linked purchase orders to calculate the due date for the bill. For example, if terms of payment on PO 1 is 30 days and terms of payment on PO 2 is 45 days, then the highest terms of payment, i.e., 45 days will be considered.
The bill due date will also reflect as the invoice due date for your vendor invoices.
For example, the due date calculated from receipt date and terms of payment is 16/6/2024 for the below mentioned bill.
So, on the corresponding vendor invoice on the vendor portal, the invoice due date will also be 16/6/2024.
The due date will be locked and cannot be edited by your vendor.
You can see the changes made for due dates on the Bill Timeline.
Your vendor can also view the due date changes from the Invoice Timeline of the Vendor Portal.
If the Terms of Payment for all Purchase Orders are blank, then the due date will be calculated as follows:
- For bills created from the bill table view and receipt note, the due date will be the date of bill creation.
- For bills created using OCR, the due date will be the due date mentioned in the OCR file.
- For bills synced from vendor invoice, the due date will be the due date mentioned in the vendor invoice.
How is due date calculated based on terms of payment and vendor invoice issue date?
When your vendor is creating an invoice from customer purchase order or customer receipt note in the vendor portal, then the due date will be calculated as follows:
Due Date = Issue Date + Longest Terms of Payment of the Purchase Orders linked to the bill.
Issue date refers to the date the invoice was issued.
Terms of Payment is calculated by subtracting the due date mentioned on the purchase order from the date the purchase order is created.
Longest Terms of Payment of the Purchase Orders mean the system will use the highest value of terms of payment from all linked purchase orders to calculate the due date for the invoice. For example, if terms of payment on PO 1 is 30 days and terms of payment on PO 2 is 45 days, then the highest terms of payment, i.e., 45 days will be considered.
Let's take a look at an example. The Terms of Payment for the Customer Purchase Order mentioned below is 30 days.
When your vendor creates the invoice from the customer purchase order, then the due date is calculated as the sum of issue date which is 02/07/2024 and terms of payment. So, the Due Date results to be 01/08/2024.
If the Terms of Payment for all Customer Purchase Orders are blank, then the due date will be the date the invoice was issued.