Payment Agreement Dictionary

However, when you use online billing software such as Debitoor, there are specific sections for information such as customer notes and payment terms. It is even possible to include these messages by default, so they don`t need to be entered every time. To avoid any doubt, this means that when a worker receives more than the fees prescribed by his level (the over-convention payment), all annual increases provided under this agreement (at the discretion of the Chief Executive Officer) may be included in the payment of the over-convention. Payment terms contain clear information about the expected payment at a sale. Often, payment terms are included on an invoice and indicate how much time the buyer has for payment when buying. When you create an invoice, it is useful and often necessary to include your payment terms in the invoice itself. This will ensure that all the conditions discussed above are clearly defined when it comes to payment. These conditions provide additional information, such as the expected payment method, the granting of a discount, how the buyer can make the payment, and all the specific conditions discussed during the sale process. There are a number of abbreviations and shortcuts used to specify payment terms. For example, you might have stumbled upon: `CIA` – Cash In Advance, `EOM` – At the end of the month, for example. There are many, but it doesn`t hurt to write it clearly for a client.

If a prepayment discount is included, this is often cited in some way. This is sometimes seen as shown above – with the use of “net xx” to indicate the number of days to be paid after billing. This is often combined with details on an early discount that provide the percentage reduction in the number of days it is honored, such as “5/14”. Payment terms are the terms and conditions surrounding the payment portion of the sale, which is usually indicated by the seller to the buyer. Standard payment terms are 30 days from the billing date.