Terms of payment Vs settlement period

Hi All ,

what is the difference between Terms of payment vs Settlement period in Vendor group form . Can any pioneer explain with an example.

Thanks for the help.

Terms of payment is how long you have to pay the invoice - so they allow you 30 days. The settle period is used in cash flow forecasting, so although you are allowed 30 days you tend to pay in 40, so you would use this, potentially, in cash flow forecasting.