Payment & Delivery Terms

Align the financial and logistical terms offered to the customer with the contract, risks, and operational capacity.

Payment and delivery terms directly influence the overall value of the offer and the customer's decision. Terms such as payment period, advance payment, installments, delivery location, freight, and installation conditions should all be managed in conjunction with the price.

Sales representatives should only offer options for which they are authorized; exceptional cases require approval from finance, logistics, or management.

Payment terms

  • Advance payment
  • Advance and balance
  • Installment payment
  • Installment plan
  • Letter of credit or bank guarantee
  • Customer credit account
  • Early payment discount

Delivery conditions

  • Delivery address and location
  • Transportation responsibility
  • Freight included or excluded
  • Partial delivery
  • Delivery time
  • Installation and commissioning
  • Risk and ownership transfer

Eligibility

  • Customer credit status
  • Contract and price list
  • Product and order type
  • Country and export regulations
  • Delivery capacity
  • Limits of authority and approval.

Transfer to order

Agreed payment and delivery terms must be transferred unchanged between the offer, contract, and order; subsequent changes should be managed through revision and approval.

Manage payment and delivery terms not as mere statements under an offer, but as structured business rules that define financial risk and customer commitment.

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