Payment Terms are part of every deal and every Vendor Master File. All A/P departments have a system to manage them - in fact, Payment Terms might seem like simplest step of the Purchase-to-Payment data cycle. Without proper oversight and processes in place, however, they can become a serious issue. Reports contradict each other, historical data is inaccurate, suppliers have different information... The list goes on.
Understanding the risks of poor Payment Term practices is essential for any A/P department. In addition, having a strong system in place to organize your Payment Terms can pay huge dividends by helping you streamline your process and increase your profitability.