The situation
A hypothetical importer works from the vessel’s transit schedule, while finance uses the supplier invoices. The next order’s deposit comes due before the first order is ready for sale.
Steps in the example
- Assume the first deposit is due on day 0 and the balance on day 30.
- The first order is assumed to be ready for sale on day 65. The next order needs its deposit on day 40.
- Put the production, inspection, shipping, customs, and receiving dates above the payment schedule.
- Before changing the order quantity or approving the next deposit, check what happens if arrival is delayed or sales are slower.
What to check on your shipment
- Port-to-port transit covers only part of the time needed to replenish stock.
- Record the sale date and the date the cash becomes available separately.
- Give procurement and finance the same dated version of the schedule.
Assumptions used in this example
All timing is invented for this illustrative model. It does not describe a shipping service, client history, or promised transit time.