If the buyer uses this payment system, the payment time can be adjusted to the ongoing work progress. In addition, as valid transaction proof, it can be a guideline for the seller or the buyer when there is an error in the transaction. Progress billing can be valid transaction proof for sellers and buyers. ![]() Here are the functions of this payment system: Valid transaction proof Progress billing certainly has various functions. Share any video, e-book, and other documents digitally easily and swiftly. Switch to a paperless system by using a document management system. The number of discounts could be modify based on the agreement between buyer and seller. Meanwhile, 5/10 means that if the buyer makes payment 10 days before the delivery date of goods or services, the buyer will get a 5 percent discount. In this case, n/30 means that the payment must be made 30 days after the buyer receives the goods or services. For example, if the buyer makes a transaction on September 3rd with this type, the payment date is October 15th. ![]() This type indicates that the buyer must make a payment 15 days after the end of the month. For example, if the buyer makes a transaction on January 1st, the payment date is January 30th. In this type, the payment date is 30 days after the buyer receives the goods or services. Therefore, determining the end-of-month date in this type becomes important because it could be the due date is on the last date of the month or a certain date at the end of the month. This type requires the buyers to make a payment at the end of the month. Here are some types of it: End of Month (EOM) Progress billing as a payment system has several types. Down payment can be in the form of a nominal or certain percentage. Down payment is given when the buyer has not received the goods or service they want. Meanwhile, down payment is money that the buyer gives at the beginning of the purchase transaction when using the credit option. Progress billing is a payment system that is done gradually when the buyer has received the goods or services. The distinction between these two terms can be known through their definition. However, these two terms have different meanings. Progress billing and down payment terms are familiar in business activities. So that, the buyer only needs to follow the payment procedure that the seller has determined.Īlso read: What is ERP and Why is it Important for Businesses? The Distinction between Progress Billing and Down Payment Often the payment nominal has been determined by the seller. Through this payment system, buyers can make payment of their purchase transactions gradually. This payment system is often familiar with the term instalment or credit because the payment scheme of this payment system is done gradually. Progress billing is a payment system that can be done when the buyer has received the goods or services.
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