I do not have official Website to describe on this because it is normal in our country.
Company A, provide a project service to Company B with total project cost USD 4500.
The payment term as below:
- 40% upon received PO (Purchase Order)
- 30% upon Hardware On-site
- 20% Upon site installation
- 10% 1 Month after go live
PO received on 3th June 2020, then Company A will issued invoice with 40% from USD 4500 so, it will be Usd 1800 for the 1st Invoice.
- And Then on 10th August 2020, hardware reach site then Company A issue 2nd Invoice which is 30% from 4500, it will be USD 1350 and stated It has been paid USD 1800.
And remaining USD 1350 (4500-1800-1350)
- Then installed on 15th September, then Company A issue 3rd Invoice which is 20%., will be USD 900. Which show 1st paid, 2nd paid and remaining USD 450 (4500-1800-1350-900).
- On 15th October, paid the last Invoice which is USD 450
It should be 1 Orders but with 4 Invoices.
Normally, how to be treated?
Our country (Indonesia), treat the date payment of as Tax record