P&G Payment Terms Policy
1. Payments are made based on the structure of the Purchasing Document (Purchase Order or Scheduling Agreement). If the Purchasing Document is set up as a 3-way match, we must receive the material before the invoice will be paid. Due to specific business situations the Purchasing Document may be set up as a 2-way match (IV only or LPA), in those circumstances we will pay before receipt of the material.
2. Payment terms of paper invoices are based on the date of receipt of invoice or date of goods receipt, whichever comes later.
3. Payment for EDI, XML & Web Invoice (PO Flip) invoices are calculated based on the date of receipt.
4. Payment made by EFT is calculated based on the invoice receipt date.
5. Payment terms for EDI, XML, Web Invoice, ERS and paper invoices are pulled from the SAP Purchasing Document (either Purchase Order or Scheduling Agreement).
6. If an invoice due date falls on a weekend or holiday, invoices are paid on the following workday.
7. If an invoice is deleted or returned for missing or incorrect data, the terms will be calculated based on the receipt date of the corrected invoice.
8. Paper formatted invoices should be mailed to P&G offices. View a detailed list of locations and invoice requirements at: http://pgsupplier.com/en/current-suppliers/invoicing.shtml.
9. Functional acknowledgments for EDI, XML and Web Invoice must be checked daily to ensure complete transmissions.
10. P&G’s payment terms policy is net 75 globally, where legally allowed, for all new Suppliers/ External Business Partners (EBPs) starting March 1, 2013. This new policy change will be applied in the following phases to existing EBPs:
- July 2013 as we enter into new or modify existing agreements with our largest EBPs (>$1MM in spend with P&G)
- April 2014 on a rolling basis to the rest of our EBPs