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Generally, the Postal Service will make payment to the supplier no later than 30 days after receiving the invoice. Certain contracts incorporate very specific terms of payment and delineate an actual payment date. In these cases, the Postal Service will pay the supplier as established in the contract.
A discount date is the date by which an early or prompt payment, monetarily less than the normal payment amount because of its chronological timeliness, can be made. Consequently, the (prompt payment) discount amount is the mathematical difference between the prompt payment amount and the normal payment amount. The prompt payment discount can be represented as a raw fixed figure or as a percentage of the normal payment amount. Discount dates exist when contracts incorporate very specific terms of payment that lessen the payment amount if prompt payment is made. The Postal Service will pay the supplier as soon as possible, and not later than the discount date, in these cases. Discounts are taken from the date that the supply is delivered or the invoice is received up until the discount date. Discount dates should be exploited whenever early payment is financially advantageous to the Postal Service.
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