accounts receivable question
by Denise Kehrle
We are having a debate in our office right now and hope you can resolve an issue.
I'm in a retail department. I submit an invoice into AP dated 3/1. It has 30 day terms, being due 3/30. Our AP department states even if the check is dated 3/30 and mailed out that day (so it will not arrive into the AR department until 5ish days later)it still is with in terms. My point is that it is due in the Vendor's AR office within the 30 days.
Can you please advise which is correct?
NET 30 means the payment must arrive in the A/R department within 30 days of the date of the invoice to be within terms.
Hope that helps!
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