Due Date
What is it
The final date by which the payment must be received by the sender. It defines the timeline for the financial obligation. It calculates automatically from the payment terms.
When is it required
It is essential for ensuring timely payment. Without it, the client has no clear deadline. It removes ambiguity regarding when the funds are expected.
Standard payment terms
The due date is often calculated from standard payment codes agreed upon in the contract.
- Net 30 (+30): The full amount is due 30 days after the invoice date. This is the most common B2B standard.
- Net 60 (+60): The payment is due 60 days after the invoice date. Often used for larger corporate clients.
- EOM (End of Month): Payment is due on the last day of the month the invoice was issued.
- 2/10 Net 30: A hybrid term. The client gets a 2% discount if paid within 10 days; otherwise, the full amount is due in 30 days.
- PIA (Payment in Advance): The full amount must be paid before goods are delivered or services start.
Regional regulations
| Region | Standard Term | Maximum Allowed |
|---|---|---|
| EU (General) | 30 Days | 60 Days (unless expressly agreed and not unfair). |
| UK | 30 Days | 60 Days (negotiable, but strictly regulated for public sector). |
| USA | Net 30 (Industry norm) | Unregulated federall (except government contracts). Governed by state contract law. |
| France | 30 Days | Strictly capped at 60 calendar days or 45 days EOM. |
| Poland | 30 Days | 60 Days (Strictly enforced for asymmetry where buyer is large and seller is SME). |
Common pitfalls
- Setting "Due on Receipt" which is often ignored. Specific dates are more effective psychologically and legally.
- Calculating the date incorrectly based on terms. This leads to disputes about late fees.
- Failing to enforce late fees associated with the date. This trains clients to ignore the deadline.
Common mistakes when filling the field
- Setting the due date before the issue date. This makes compliance impossible.
- Using a weekend or holiday as the due date. Banking systems may not process transfers on these days.
- Leaving it ambiguous or blank. This delays payment indefinitely.
Why is it there
It provides a clear deadline for the payer. It helps manage cash flow and expectations for both parties. It serves as the basis for debt collection actions.