Invoice due date: definition
The due date of an invoice corresponds to the payment period granted by a professional to their client as part of their commercial agreement.
Every supplier of goods or services is required to issue an invoice upon delivery. The invoice must include a due date, which allows the customer to know the time they have to pay.
This information is also used by the service provider to monitor its collections and identify any delays.
What are the key dates in terms of billing ?
Three dates are essential to remember for effective invoicing :
- The invoice date: this is the date the invoice was issued.
- The invoice due date: this is the deadline set for paying the invoice.
- Settlement date: the date on which payment was received.
These dates allow you to track receipts and delays for more optimized management of the company’s cash flow.
Invoice due date: what does the law say?
The payment due date is a mandatory statement that must appear on all invoices issued by a company.
The invoice issuer is also required to indicate
Article L441-9 of the French Commercial Code :
“The invoice states the date on which payment must be made. It specifies the discount conditions applicable in the event of payment on a date prior to that resulting from the application of the general terms and conditions of sale, the rate of penalties payable on the day following the payment date shown on the invoice, as well as the amount of the fixed compensation for recovery costs due to the creditor in the event of late payment. Payment is deemed to have been made on the date on which the funds are made available by the customer to the beneficiary or their subrogated representative.”
Regarding the payment period, it is set by default at 30 days after receipt of goods or performance of services. In the context of a contract, this period can be extended up to 60 days net after the invoice issue date and 45 days end of month.
The deadline for payment of invoices must also be indicated in your general terms and conditions.
How to determine the due date?
Between the financial sustainability of your company and the desire to offer your customers commercial agreements that can suit them, setting a deadline can sometimes be complicated.
Here are some simple methods to calculate the ideal invoice due date:
- Calculating the due date in net number of days : this is the most common method. It consists of adding the number of days specified in the contract to the invoice issue date.
- Calculation X days end of month (method 1) : invoice date + 45 days + end of month. This method consists of adding the number of days agreed with your customer from the invoice issue date and then paying it at the end of the month.
Example : if the invoice is issued on 11/01/2025 with a deadline of 45 days end of month. The due date of this invoice is 12/31/2025.
- Calculation X days end of month (method 2) : invoice date + end of month + X days. With this method, the days are counted from the end of the month in which the invoice is issued.
Example : If the invoice is issued on 01/11/2025 with a deadline from the end of the month + 45 days. The due date of this invoice is 01/14/2025.
For this type of invoice, the most common payment deadline is that provided for by the
LME law, i.e., 45 days from the end of the month.
Good to know : The law sets a maximum deadline; nothing prevents you from applying a shorter deadline. It is therefore possible to apply a 30-day end-of-month rule.
What are the special cases ?
The type of contract, service, or business relationship can impact the invoice due date.
B2B payment terms may differ from standard practices. Here are some special cases:
- Cash payment : The invoice must be paid immediately. This type of invoicing is generally used for a low-value service, a one-time service, or a first-time collaboration.
- Early payment with discount : The supplier can offer a discount to the customer for early payment. The due date remains the same, but a discount is offered to encourage early payment.
- Payment with deposit : When a deposit is requested, for example for long-term services or custom orders, a separate invoice is issued with its own due date. The final invoice will then include a new due date, generally set upon delivery or completion of the project.
- Instalment payment : as part of a contract with progressive phases or subscriptions. Each payment must result in the creation of an invoice.
Good to know : Your customers must be informed of these payment rules in the general terms and conditions of sale and/or in a contract. This protects you in the event of a dispute.
What to do in case of late payment ?
In the event of late payment, the customer may be exposed to late payment penalties and a fixed compensation for recovery costs to be paid to the supplier.
How to calculate late payment compensation ?
A late payment penalty is a financial penalty that applies for each day beyond the scheduled payment date. It is calculated from the day after the due date.
Late payment penalties, as well as the conditions of application, must be formulated in the General Terms and Conditions and/or in the contract.
Compensation for late payment of invoices cannot be less than 3 times the legal interest rate, i.e. 8.28%.
The Commercial Code recommends basing the decision on the key rate of the European Central Bank (ECB) plus 10 points.
This rate changes every six months. For the first half of 2025, it was 3.15%. The recommended penalty rate is therefore 13.15%. For the second quarter, the ECB rate is 2.15%, giving a penalty rate of 12.15%.
Good to know : late payment penalties can be applied without a payment reminder or formal notice.
Lump sum recovery compensation
A fixed recovery fee of €40 is applied. Like late payment penalties, this fee must be stated in the general terms and conditions and/or contract. It is applied per invoice, not per day of delay. This fee also applies in the event of partial payment of the invoice.
However, when the recovery costs are higher than the amount of the compensation, the supplier can request a supplement with supporting documents.
CentralPay: a valuable aid for invoice collection
CentralPay fully automates collection management, based on your customer invoices. The platform retrieves information from your ERP and automates tracking, reminders, and reconciliation, without manual intervention.
The company saves time, secures its cash flow and offers its customers a smooth and professional experience, while ensuring payment deadlines are met.
