preferential payment terms

  Our client's Italy customers have a preferential date of payments for each month.  Preferential date is the date on which the payment would be made during a month, i.e., the customer would pay on preferential days during a month irrespective of the actual due date of the invoice during the month. 

 

As an Example,  client derives the due date for receivables based on the following:

 

Customer x has the following preferential days for payment during a month: 

 

Invoices falling due between dates        Preferential day for Payment

 

                        1-15                                             15

                        15-20                                           20

                        20-30                                          30  

                       

 

Due date as per the payment terms (Ex: 90days from the date of the invoice)+ x no. of days.