Due date calculation

Several methods exist to determine the due date of an invoice or of a payment schedule line. In the Payment Terms (tcmcs0113s000) session, you can specify how LN determines the due dates.

The invoice's document date (date of creation) is the base for the due date calculation. The final due date is determined by the following details:

• In the Payment Terms (tcmcs0113s000) session:

  • The payment period

    The payment period is the number of days or months that is added to the invoice's document date before or after calculating the due date to obtain the actual due date.

  • The due date calculation method

    The algorithm for calculating the due date.

  • The fixed payment days

    Specific days of the month, on which payments are due. If you specify fixed payment days, LN changes the calculated due date into the next fixed payment day. You can specify up to three fixed payment days, for example, the first, the tenth, and the twentieth day of each month.

• The payment calendar

  For pay-by business partners and for your own financial company, you can optionally define a payment calendar. If the calculated due date is marked as a holiday on the payment calendar, LN changes the due date to the previous working day or, in some situations, to the next working day. This results in the actual due date.

Additional days after due date

In the Pay-by Business Partner (tccom4114s000) and the Pay-to Business Partner (tccom4124s000) sessions, you can specify a number of additional days in the Extra Days after Due Date field. For example, the number of days that the bank needs to transfer the money.

The Extra Days after Due Date field is used in Financials to:

• Calculate the expected payment date in the Sales Invoices (tfacr1110s000) session
• Maintain the expected payment date in the Purchase Invoice Cash Dates (tfcmg3111m000) session
• Calculate a cash flow forecast on the basis of the expected payment date in the Update Cash Forecast (tfcmg3210m000) session.