Engagement

Payment Terms Compliance Review

Focused check of due dates, early-payment discounts, penalty clauses, and whether remittances followed the calendar written into each vendor agreement.

Purpose

Many overpayments hide in calendars rather than unit prices. This engagement isolates payment-term language — net days, early-settlement discounts, late-fee triggers — and tests whether remittance batches followed those rules.

Included

  • Extraction of term language from current agreements
  • Sample of payment batches across quiet and peak months
  • Memo listing missed discounts, early releases without approval, and late-fee exposure
  • Recommendations for AP checklist updates

Exclusions

Statutory tax advice, ERP configuration, and renegotiation of supplier terms sit outside this review.

Process

After a short intake call we request remittance exports and the relevant contract pages. Sampling follows a agreed window (often twelve months). You receive a compliance memo and a optional thirty-minute walkthrough with your AP lead.