Understanding Supplier Payment Terms

Learn how to set up the correct payment terms for your suppliers

Review the video together with the steps outlined below, then use the button provided to continue to the next topic.

1. Click ‘Suppliers’ in the top menu
2. Search for the supplier you want to add payment terms to and click their name under ‘Supplier Name’
3. Click ‘Products’ from the menu on the left hand side
4. Click ‘Select Action’ > ‘Edit’ on the product you are adding payment terms for
5. Scroll down to the ‘Supplier Payment Term’ section
   
   Here’s an overview of the different payment terms:
   
   2 Months in Arrears – Commission is paid 2 months behind the actual usage based on the number of days in the preceding month.
   
   Monthly in Arrears – Commission is paid 1 month behind the consumption usage based on the number of days in the preceding month.  E.g. consume energy this month, commission is paid for it next month
   
   Annual Split (Live delay) – a percentage of the total contract consumption is allocated to the live date (plus 2 months) reconciliation occurs 2 months after the final month of the contract.  If you allocate a percentage to the  anniversary date then reconciliation will happen annually 2 months after the anniversary date.
   
   Quarterly in Arrears – commission is paid 3 months behind the actual usage based on the days in the preceding quarter
   
   Split Annual Value – a percentage of the total contract consumption is allocated to the Sign and/or Live date.  Reconciliation occurs in the final month of the contract.  If a percentage is allocated to the Anniversary Date then reconciliation will happen annually in the 12^th month each year.  You can choose a delay (in months) to be applied to the Expected payment date.  Note: If you don’t enter anything into anniversary then the rest of the % is automatically allocated at the end of the contract.
   
   Split Annual Value – Y2 additional split  – a percentage of the total contract consumption is allocated to the sign/live dates for contracts of 2+ years. Reconciliation occurs at the end of the contract. Note: If you don’t enter anything into anniversary then the rest of the % is automatically allocated at the end of the contract.
   
   Split Reconciled at 18 Months – a percent of the total contract consumption is allocated to the Sign date and remainder is applied 18 months after the sign date
   
   Split Reconciled at 12 Months – a percent of the total contract consumption is allocated to the Sign date and the remainder is applied 12 months after the sign date
   
   Split Remainder – a percentage of the first 3 years of the contract consumption is allocated to the live date with reconciliation of the first 3 years occurring in month 36.  Remainder is allocated to the 37th