# Difference between Terms of Payment And Settlement period

**URL:** <https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526>\
**Category:** General discussions\
**Created:** [June 26, 2014, 8:28am UTC](https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526 "2014-06-26T08:28:09Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![paramesh\_ax](https://avatars.discourse-cdn.com/v4/letter/p/ea5d25/32.png) [@paramesh\_ax](https://www.dynamicsuser.net/u/paramesh_ax)\
**Post date:** [June 26, 2014, 8:28am UTC](https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526/1 "2014-06-26T08:28:09Z")

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Hai Guys.

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

Thanks In Advance

Regards

PARAMESH.M

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**Author:** ![Andre\_Arnaud\_de\_Cala](https://avatars.discourse-cdn.com/v4/letter/a/919ad9/32.png) [@Andre\_Arnaud\_de\_Cala](https://www.dynamicsuser.net/u/Andre_Arnaud_de_Cala)\
**Post date:** [June 26, 2014, 8:39am UTC](https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526/2 "2014-06-26T08:39:42Z")

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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.

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**Author:** ![paramesh\_ax](https://avatars.discourse-cdn.com/v4/letter/p/ea5d25/32.png) [@paramesh\_ax](https://www.dynamicsuser.net/u/paramesh_ax)\
**Post date:** [July 2, 2014, 1:21pm UTC](https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526/3 "2014-07-02T13:21:43Z")

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Thanks Arnaud-de-Calavon. Now Its Clear

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**Author:** ![Andre\_Arnaud\_de\_Cala](https://avatars.discourse-cdn.com/v4/letter/a/919ad9/32.png) [@Andre\_Arnaud\_de\_Cala](https://www.dynamicsuser.net/u/Andre_Arnaud_de_Cala)\
**Post date:** [August 6, 2014, 8:05am UTC](https://www.dynamicsuser.net/t/difference-between-terms-of-payment-and-settlement-period/53526/4 "2014-08-06T08:05:07Z")

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Hi Paramesh,

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