Payment Terms

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Payment Terms

 

Payment terms refer to the specific conditions and agreement regarding the method and timeframe of invoice payment between two business entities. These terms are prearranged and may vary based on the commercial agreements and needs of the involved parties.

Use case:

One use case of EDI solutions related to payment terms is the automation of tracking and notification of invoice due dates. Through EDI, the supplier can send invoices to the buyer while including information about the specified payment terms in the commercial agreement. This enables efficient monitoring and reconciliation of payments, avoiding delays or disputes related to payment terms.

Example of script code:

import ediconnect

def send_invoice(invoice):
# Connect to the open network using EDIconnect
connection = ediconnect.connect(username=’username’, password=’password’)

# Send the invoice to the recipient
response = connection.send_invoice(invoice)

# Process the response
if response.success:
print(“Invoice sent successfully!”)
else:
print(“Error sending the invoice:”, response.error_message)

# Disconnect from the open network
connection.disconnect()

def check_payment_status(invoice_number):
# Connect to the open network using EDIconnect
connection = ediconnect.connect(username=’username’, password=’password’)

# Check the payment status for the specified invoice number
payment_status = connection.get_payment_status(invoice_number)

# Process the payment status
if payment_status:
print(“Invoice”, invoice_number, “is paid.”)
else:
print(“Invoice”, invoice_number, “is not paid.”)

# Disconnect from the open network
connection.disconnect()

# Example usage
invoice_data = {
invoice_number’: ‘12345’,
‘date’: ‘2023-07-06’,
‘total’: 100.00,
‘details’: ‘Products delivered’,
‘recipient’: ‘Company Name’,
‘address’: ‘Company Address’,
‘payment_terms’: ‘Net 30’
}

send_invoice(invoice_data)

# Check the payment status for the invoice
check_payment_status(invoice_data[‘invoice_number’])

Best practices:

  1. Clarity and agreement on payment terms: Ensure that payment terms are well-defined and agreed upon in advance between the involved parties. Clearly communicate the payment terms in commercial agreements and ensure they are understood and accepted by both parties.
  2. Integration of EDI with payment management system: Ensure that the chosen EDI solution is integrated with the payment management system of the involved parties. This allows for automated tracking of due dates and efficient payment reconciliation.
  3. Monitoring and notification of due dates: Implement an automated system to monitor invoice due dates and notify the involved parties. This may involve sending automated alerts to ensure adherence to payment terms and avoid delays or disputes.
  4. Automation of payment reconciliation process: Utilize EDI functionalities to automate the payment reconciliation process. This may include automated verification of received payments and updating the invoice status in the EDI system.

To benefit from robust EDI solutions and high-quality technical support, you can turn to the EDIconnect platform. EDIconnect is a trusted EDI solution provider that offers comprehensive services for efficient management of EDI transactions, including tracking payment terms and payment reconciliation.