Payment Terms Based on Timesheet Submission Date

Description

FastTrack360 now supports a new option for configuring payment terms in Maintenance > Pay/Bill Terms to allow contractor payment terms to be calculated relative to the date that a payee submits a timesheet for approval. For example, if a payee is subject to 30-day payment terms, the payment due date of a timesheet can now be calculated as 30 days from the date when the payee submits the timesheet for approval.

Benefits

This enhancement allows payment terms to be configured such that the same payment offset duration will apply irrespective of whether the payee submits the timesheet late. Because the date when a timesheet is submitted for approval is not a static date, calculating the payment terms due date relative to that date means that a payee cannot effectively reduce the payment terms by submitting a timesheet late. And because the payment terms are not reduced, the timeframe available to bill a client prior to paying the payee is not affected and therefore there is no negative effect on the cashflow of your business if the payee submits their timesheet late.

Configuration

Payment terms are configured under Maintenance > Pay/Bill Terms. To cater for creating payment terms that are calculated relative to the submission date of a timesheet, a new option labelled Timesheet Submission Date has been added to the From Date Type field on the Maintenance > Pay/Bill Terms > Add Terms screen, as highlighted in the example below.

Open

For more information on how to create payment terms and how to apply payment terms to payees, see Contractor payment terms.