Terms are net 30. The invoice was received in the designated billing office on 15 February 96. The item was received on 20 March 96. Based on these dates, the PPA clock will start 20 March 96. To prevent interest penalties, a payment must be dated either on or prior to 19 April 96.
Some construction contracts authorize progress payments.
Progress payments relieve the contractor from complete responsibility for financing of contracts which extend over a long period of time or are for large amounts of money. Usually progress payments prior to final payment are paid within 14 days after vendor sends payment request. Final payment on these types of contracts normally revert to net 30 days. Fast Pay Contracts. Fast Pay contracts authorize finance to pay vendors within 15 days after receipt of an invoice and without a receiving report.