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
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