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  7. Clarification of 'Payment Date'
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Clarification of 'Payment Date'

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9 years 1 month ago #1670 by tomt
Clarification of 'Payment Date' was created by tomt
Hi,
We have a contract with an English Local Authority, who make payments by BACS which take up to 3 working days to clear (always on the 3rd day in our experience).

They email us a Remittance advice on the day they send the payment.

If I'm working out which payments are late, should I use the date they sent the payment, or the date I received the funds?

My reckoning is that until I have the money in my possession, it isn't paid yet, so I should use the 'arrival of funds' date.

Has anyone got any experience/advice on this?
Thanks,
Tom

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9 years 1 month ago #1671 by David J
Replied by David J on topic Re: Clarification of 'Payment Date'
Hello Tom
Your reckoning is right. You should have 'cleared funds' in your account on or before the due date. Sending a cheque on the 30th day (if that is the agreed terms) or paying by BACS on the 30th day does not represent paying on time!
If the faster payment service is used, then funds are transferred within 2 hours.

I hope that helps.

Best regards

David

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9 years 1 month ago #1672 by tomt
Replied by tomt on topic Re: Clarification of 'Payment Date'
Thanks David,
That's great, and seems the logical way too.
I only stumbled on this site earlier today and am glad there is help and support out there to help businesses.
Tom

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  1. Discussions forums
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Clarification of 'Payment Date'
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