What is an invoice due for payment and what does the invoice due date mean?

Invoice due date and due date: what exactly are we talking about?

A due invoice is an invoice that must be paid by a specific date usually indicated on the document. This date is called due date . It represents the deadline for payment of the invoice by the customer .

The due date is calculated on the basis of the payment term applied to the invoice issue date, i.e. the number of days given to the customer to settle the invoice. It can be fixed by law, by the contract or by the general conditions of sale. In any case, the payment period must not exceed the limit set by law. The maximum payment term authorized by law is 60 days .

The due date invoice thus refers to a commercial invoice specifying a payment deadline for the goods or services supplied. While the due date indicates the exact day on which payment is due. These terms are essential for financial management, influencing cash flow and commercial relations.

What's the difference with the invoice issue date?

La difference between maturity date and issue date of an invoice lies in their temporal nature. The issue date represents when the invoice is created, indicating the day on which the goods or services were supplied.

On the other hand, the due date specifies the time allowed for the customer to make payment which determines the time limit for settling the invoice.

The first concerns invoice creation, while the second relates to the payment period. The In other words, the issue date is the reference date for determining the due date for payment of the invoice.

How do I define the due date on an invoice?

To set the due date on an invoice, follow these steps :

• Identify the issue date The day the invoice is created;

• Determine payment terms Set the deadline for payment (e.g. 30 days from date of issue);

• Calculate the due date: add the payment term to the issue date to obtain the payment due date. There are two methods for determining the due date of an invoice. It can be based on a net number of days, or on a fixed day in the month.

• Communicate clearly: mention the due date on the invoice to inform the customer of the payment deadline.

The calculation method favoured by the law is that which sets a fixed date in the month as the invoice due date. For example, with a payment term of 30 days end of month, the 15th will set the due date at the 15th of the following month, after a 30-day delay. Example: An invoice issued on April 12 with a payment term of 45 days end of month, on the 15th, must be paid by June 15.

What does the law say about overdue invoices?

Here are the main rules you need to know about due invoices:

• The maximum payment term is 60 days net. from the date of invoice issue. By way of derogation, 45 days end of month, provided that this period is specified in the contract and does not constitute a manifest abuse to the creditor's detriment.

• In the absence of a time limit agreed between the parties, a supplementary period of 30 days applies from receipt of the goods or performance of the service requested.

• Professionals who fail to meet these deadlines are liable to an administrative fine. The amount may not exceed 75,000 euros for an individual and 2 million euros for a legal entity. The sanction will be systematically published on the DGCCRF website. Publication will be at the expense of the sanctioned party, in a medium authorized to carry legal notices.

• Companies whose annual financial statements are certified by a statutory auditor must communicate information. This concerns the payment terms of their suppliers and customers.

What are the exceptions?

There are exceptions to the payment terms for invoices due on the due date. These apply to certain business sectors or specific situations. Here are a few examples:

• The green spaces maintenance sector : up to 55 days end of month after invoice date ;

• The agricultural equipment sector : up to 110 days after invoice date ;

• Seasonal sales of snow sports equipment: up to 90 days after invoice date ;

• Leather industry: up to 54 days end of month after invoice date ;

• Watches, jewelry and goldsmiths: up to 59 days end of month or 74 days net after the invoice date.

What are the risks of overdue invoices?

Exceeding the due date of an invoice without payment can entail risks for the customer, but also for the supplier, such as :

Late payment penalties

Failure to pay by the due date may result in the application of late payment penalties, increasing the total cost of the bill.

Impact on commercial relations

Late payments can jeopardize the trust and relationship with the supplier, affecting future transactions.

Risk of litigation

Failure to meet payment deadlines may result in disputes and legal proceedings This has led to costs and legal complications.

Impact on credit rating

Frequent delays can affect the company's credit rating, complicating access to future financing.

Administrative penalties

Customers who fail to pay their invoices on time may also be subject to sanctions administratives, especially if it's a public contract.

Hero: the solution for getting paid on the first day and not having to wait until the due date

With Hero you benefit from a number of advantages:

• You are paid on first day as soon as you ship your sales. Hero advances you 80% of your net sales;

• You offer your customers easy payment terms, such as payment in 3 or 4 instalments free of charge, or payment deferred for 30 or 60 days. You increase your average shopping basket and your conversion rate.

• You benefit from a solution that adapts to all sales modes: online, offline on quotation or invoice, or in-store ;

• You simplify your customer experience, by offering a fast, secure payment path.

In conclusion, determining the due date of an invoice is an essential element in corporate financial management. Understanding the due date guarantees stable cash flow and strengthens business relationships. Rigorous management of invoice due is therefore crucial to good financial health.

Other articles on the same subject:

• Terms of payment: template, examples and deadlines to be applied

• Can a customer be forced to pay by direct debit?

• Cash payment on receipt of invoice: can he be forced to pay?

• How do I receive a bank transfer?

• Instant payments for professionals: a complete guide

• Cash payment: how it works, advantages and disadvantages

• Can I receive a bank transfer on a Sunday?

• What is a payment facility?

• How long does a wire transfer take? Banking time

• Pending payment: 3 minutes to understand everything

• What is an overdue invoice and what are the solutions?

• How long does a SEPA direct debit take?