Which payment terms should I use for PTRS?

Quick answer

Use the terms in a written contract where the contract specifies payment terms. If there is no written contract or it does not specify payment terms, use the relevant invoice or notice-for-payment terms.

What does this mean?

The Regulator establishes a hierarchy for determining payment terms. Written contract terms take precedence over invoice terms where they differ. Purchase orders can also establish written payment terms. If an invoice contains multiple inconsistent terms, the longer term is used. Payment terms must ultimately be expressed in calendar days.

Practical point

Do not assume the supplier invoice always provides the PTRS payment term. If your purchase order or contract establishes different terms, those contractual terms may be the ones that need to be reported.

Other ways people ask this

• Do contract payment terms override invoice terms for PTRS?
• Should I use the PO terms or the supplier invoice terms?
• What if the invoice payment terms are different from the contract?
• How do I convert payment terms into calendar days?

Official sources

• Payment Times Reporting Guidance Materials
  Payment terms
  Paragraphs: 143, 144, 145, 146, 147, 148, 149, 150 · Examples: 32, 33, 34, 35 · Page: 38-39
• Worked Example – Standard Payment Times Report
  Glossary
  Reference: Contract/PO/Notice/Invoice payment terms
• Worked Example – Standard Payment Times Report
  Glossary
  Reference: Payment Term

Related guidance

• What does paid within terms mean for PTRS?
• How is payment time calculated for PTRS?
• Which invoice date should I use for PTRS?

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