Should the terms "Due Upon Receipt" be treated as Net30?


"Due Upon Receipt" means pay it as soon as the invoice is received. Whether you do pay it immediately depends on your company's payment policy toward such factors as the nature of the purchase (is it raw material for the production line? medical supplies? or a restock of manila folders?), and relationship with the vendor. Your company's policy may be net 30 for everything, or it may vary according to terms of agreements or vendor types.

But "upon receipt" means what it says. Keep in mind if you do pay other than the terms of the invoice then the vendor may report delinquent payments to Dun & Bradstreet or other business credit rating agencies and can results on low credit ratings when payment is beyond terms.

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