Expiration date – What is the expiration date?

The expiration date is the deadline for payment of an invoice that a supplier and its client agree upon before providing the service.

With SumUp Invoices you can make invoices , indicate the due date and keep track of unpaid invoices.

What is the due date of an invoice

The due date is simply information that indicates the due date for the invoice collection.

Generally, all invoice models include the expiration date as a parameter, unless it is a service that is charged at the time the invoice is issued.

Although the expiration date is not a mandatory parameter in the content of the invoices – the billing regulations do not contemplate it as such – it is convenient to fix that information when the invoice is not paid at the moment.

The issuer of the invoice – or service provider – can indicate the date he wishes in agreement with his client or with the latter’s acceptance.

It is recommended that such information is not ambiguous. More information on how to set payment terms on an invoice.

Invoice date and due date

The issue date of an invoice – or billing date – should not be confused with the due date.

The invoice date is mandatory and refers to two kinds of information:

  • The date the invoice is issued.
  • The date of the operations.

When both dates differ, it should be noted on the invoice.

Although the invoice date and the due date are different concepts, that does not mean that they do not have any relationship.

The expiration date usually takes as a reference the date of the invoice, that is, the date of issue. Though not always.

For example, a 30-day expiration date. It must be specified whether it is 30 days from the date of issue or 30 days from the date of receipt of the invoice.

If an exact expiration date is used, all ambiguity is eliminated and it is not necessary to clarify the above.

Invoice with no due date

An invoice without an expiration date is not recommended, except in a perfectly logical case: that the service has been paid at the time of issuance of the invoice.

The expiration date plays an important role from different points of view:

  • Commercially, it is the reference that supplier and customer have to satisfy the latter’s debt with the former.
  • At the accounting level, the supplier has control of all accounts receivable.
  • Legally, it is the reference that the provider has to claim a debt if the fixed expiration date has been exceeded.

The latter – the legal point of view – is important, since the expiration date will define the moment from which the provider can initiate a debt claim process or payment order procedure for non-payment of invoices.

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