Question { HCL, 24122 }

What is Proxima Payment Terms?

Answer

In proxima payment term to determine the due date of the
installment, it requires 3 details :
Cut Off day, Day of Month and
Months ahead.

Ex: Cut off day=20, Day of month=25 and Months a head=1
transaction raised on 15-Jun-2007

Here cut of day is 20th, the payment cycle is 20th of last
month to 19th of this month. So for this example payment
cycle is 20-may to 19-june, 2007.So the transaction date
falls in this current billing cycle, and months ahead is 1,
due date will be taken as 25th july.If months ahead is 0,
then due date will be 25th of june.