Payment Terms & Billing Models

Payment terms and billing models shape when suppliers are paid and how inbound costs are reviewed.

Common fields to maintain

• Net terms
• Prepay requirements
• Freight treatment
• Dropship or stocking model
• Credit hold status

Why this matters operationally

• Buyers know whether approval is required before release
• Receiving can flag invoices that do not match expectations
• Accounting can reconcile supplier documents faster

Review routine

• Confirm terms during supplier onboarding
• Recheck after pricing or contract changes
• Escalate exceptions before inventory is urgently needed