Payment Term or Term of Payment

Subdomain

🏢STRUCTURE OF PURCHASING

Business Term Definition

Payment terms specify the time period in which a supplier requests payment and offers any discounts that they choose to make available for early payment. In the case of purchases with orders, payment terms are defined in vendor purchasing views i.e. at purchasing organization thus country and scope company level, (plant level is possible but not welcomed), they could be offset by payment terms defined at contract level following a more specific negotiation, they could be offset at purchase order level or at invoice level under procurement authority. In the case of purchases without orders, payment terms are defined in vendor company views i.e. at company level, they could be offset at invoice level under procurement authority.

Roles

Data Sources, Type and Classification