{"id":2491,"date":"2016-01-07T18:39:30","date_gmt":"2016-01-07T18:39:30","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=2491"},"modified":"2022-08-03T07:28:51","modified_gmt":"2022-08-03T07:28:51","slug":"working-capital-and-starting-the-clock-for-vendor-payments","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2016\/01\/working-capital-and-starting-the-clock-for-vendor-payments\/","title":{"rendered":"Working Capital and Starting the Clock for Vendor Payments"},"content":{"rendered":"

Shared Services organizations can, and should, play a critical role in managing and maximizing working capital. While collaborating with Procurement on vendor terms and Treasury on cash management<\/a> is a common practice, one obvious solution that is often overlooked is the manner in which the invoice due date is calculated.<\/span><\/p>\n

Recently, Peeriosity\u2019s iPollingTM<\/sup> functionality was used to perform custom research in the Accounts Payable (P2P) research area<\/a> to ask a very simple question, \u201cWhat date is used as the basis to calculate the invoice due date at your company\u201d? \u00a0It\u2019s interesting how a \u201cbest practice<\/a>\u201d isn\u2019t always the one the majority of companies are following, even when the issue in question isn\u2019t all that complicated. \u00a0While the results weren\u2019t particularly shocking \u2013 73% use the invoice date and 23% using either the invoice receipt date, the goods receipt date, or some combination of methods \u2013 once you read through the comments it quickly becomes obvious that the most popular answer is not likely to be the right answer for many companies.<\/span><\/p>\n

Here are the details:<\/span><\/p>\n

\"which<\/p>\n

While the vast majority of the companies participating in the poll responded that they \u201cfollow the traditional approach of using the invoice date to calculate the due date\u201d, almost every company which took a different approach added a comment to provide additional insight to their response.\u00a0 Here are some of the comments:<\/span><\/p>\n