Changes To Net Due Date Calculation Logic

Dear all,

We would like to update you regarding a change in the way we calculate invoice due dates which is effective starting 21st January 2017.

The change is important to avoid any confusion about the payment date once services have been rendered or a dispute has been resolved.

Below is a snapshot of the current process and the new guidance to be followed starting 21st Jan. 2017.


  Current process New process
Freight invoices The due date calculation is based on billing date or on ETD (for export invoices) or ETA (for import invoices) in cases where invoicing date is before ETD/ETA. The ERD/EDD is the baseline dates for SD transport modes for export and import invoices, respectively. For invoices that are generated before these dates, else billing date is considered as baseline date for due date calculation. The due date will now be calculated based on ETD for export invoices and ETA for import invoices for CY-CY/SD-CY transport modes, irrespective of when the invoice is generated. Similarly, for CY-SD/SD-SD shipments ETD would be baseline date for export invoices and EDD would be baseline date for import invoices for due date calculation, irrespective of when the invoice is generated.
D&D invoices The due date is calculated based on the billing date. The due date will still be calculated based on the billing date. However, thedue date calculated on the original invoice will be carried over to any subsequent invoicesin the event of cancellation and re-billing for D&D invoices.

 

As an additional reference, please find below the new due date calculation based on the different transport mode possibilities:

Possible scenarios for freight invoices:


Transport Mode Prepaid payment (Due Date) Collect payment (Due date)
CY-CY ETD + Credit Period ETA + Credit Period
SD-SD ETD + Credit Period EDD + Credit Period
CY-SD ETD + Credit Period EDD + Credit Period
SD-CY ETD + Credit Period ETA + Credit Per

 

Possible scenarios for freight invoices:

  • Due date calculation for the first Invoice and or any subsequent invoices = Billing date + Payment terms
  • Cancellation and re-billing of existing D&D Invoices, Due date = Original billing date + Payment terms
  • Cancellation and re-billing of existing Manual & DERT Invoices, Due date = Billing date + Payment terms

If having any additional questions, please reach out to your local Seago Line representative.

We appreciate your understanding of these coming changes in our net due date calculation logic.

Kind Regards,
Seago Line

 

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