Difference between Terms of Payment And Settlement period

Hai Guys.

Can anyone tell me the difference between Terms of Payment and Settlement Period With an Example.

Thanks In Advance



Hi Paramesh,

The Terms of Payment is used to calculate the due date for invoices. The Settlement Period is used for cash flow analysis. It will add some days on the due date so, it will expect the incoming or outgoing payments on the same day or later than the due date of the invoices.

Hope this will help you in understanding.

Thanks Arnaud-de-Calavon. Now Its Clear

Hi Paramesh,

Can you verify the answer? Then the question will be marked as answered.