credit card companies and other vendors have a cutoff date that is used to determine which charges will appear on the statement.
the payment is due on the DUE DATE.
the credit period is charges through the 18th (cuttoff date or stmt date).
the payment due date is 25 days after the 18th, or approx the 12th of the next month.
if a charge was made on the 10th, it should be due 25 days after the cutoff date.
If a charge is on the 29th it would not be due until 25 days after the next cutoff date.
currently AP assigned the next 18th even if it is less than 30 days into the future because it doesn't consider the cutoff date.
and some vendors have a split cutoff, - 2 dates in the month which means 2 due dates in a month for payments. this must be manually changed for every transaction, meaning less efficient processing,and prone to errors, or missed payment dates.
by: Kathy R. | over a year ago | Accounts Payable
Comments
I thoroughly agree with Kathy, but I don't think we need it for all A/P - just credit cards. Of course, there are companies who invoice throughout the month, but have you pay from their monthly statements ... So, maybe an option by vendor? I don't think everyone wants to have to enter / maintain a cutoff date for the vast majority of AP vendors who issue typical invoices and have you pay from them - unnecessary work and more room for error.
I agree with both Kathy and Bob on this one
Another example is for paying taxes more than once a month but not every week.
since there are two (2) due dates each month we need to always manually override the due date field .
we therefore need FIRST DUE DATE and the cutoff date it relates to, and a SECOND DUE DATE and the cutoff date it relates to.
please add these additional field