Invoices due date calculation
The due date is the date on which the buyer commit to pay the bill. It is calculated according to the payment term applied to the issuance date of the invoice (better than the receipt of the invoice).Why calculate the due date precisely?
- It is the date on which the buyer must pay the bill.
- It must be incontestable by the client so that he cannot justify a delay in payment due to an incorrect invoice.
- It is a legal requirement to mention it on the invoice.
- It is the starting point for the calculation of late payment penalties.
Collect Your Receivables Effectively
Are your due dates set correctly and your invoices issued? Now comes the most important part of the process: getting paid. To do this, use the right methods and the right credit collection software, to automate your reminders, thereby improving cash flow while maintaining customer satisfaction.
✔Automated reminders based on due dates
✔Real-time DSO tracking
✔Automatic calculation of late payment penalties
✔Centralized management of accounts receivable
✔Late payment alerts
✔Customer risk management
Questions fréquentes
The due date is the deadline by which a customer must pay an invoice. It is calculated based on the invoice’s issue date (not the date of receipt) by applying the payment term agreed upon by both parties. A precise and indisputable due date is essential for legally triggering late-payment penalties.
30 days net: The due date is the invoice date plus 30 calendar days. Example: Invoice dated June 1 → due on July 1.
30 days end of month: The due date is the last day of the month following the invoice’s issuance. Example: Invoice dated June 15 → due on July 31.
There are two calculation methods:
- Method 1: Invoice date + end of the month + 45 days.
- Method 2: invoice date + 45 days + end of the month.
The due date is the end of the second month following the invoice date. Example: invoice issued on March 8 → due on May 31.
The LME (Economic Modernization Act) sets a maximum payment term of 60 days from the invoice date, or 45 days from the end of the month if this term is stipulated in the general terms and conditions of sale. Companies may apply a shorter payment term but may not exceed these limits without a sector-specific exemption.
The due date is calculated from the date the invoice is issued, not from the date it is received. This is the rule established by the LME Act and is the prevailing practice in France.