After Date

The term 'after date' refers to the words used in a bill of exchange to indicate that the period of the bill should commence from the date inserted on the bill. This affects the calculation of the payable date.
On this page

Understanding “After Date”

Definition

In the context of a bill of exchange, “after date” specifies that the time period for payment will start from the date indicated on the bill. For example, if the terms are “30 days after date,” payment is due 30 days from the date written on the bill. This term is crucial for setting clear expectations regarding payment deadlines.

Examples

  1. 30 Days After Date: A company issues a bill on August 1st with terms “30 days after date.” Payment would be due on August 31st.
  2. 60 Days After Date: A supplier provides goods with a bill dated March 15th, and the terms state “60 days after date.” The payment due date would be May 14th.

Frequently Asked Questions

What is the difference between “after date” and “after sight”?

After Date: The payment period starts from the date indicated on the bill. After Sight: The payment period starts after the bill is presented for sight and accepted.

How does “at sight” differ from “after date”?

At Sight: Payment is due immediately upon the presentation and sight of the bill. After Date: Payment is due after a specified period following the date mentioned on the bill.

How do I calculate the due date for a bill marked “90 days after date”?

Identify the date on the bill; if it’s January 1st, add 90 days. The calculated due date would be April 1st.

Can the “after date” term be altered once issued?

Generally, the terms specified on a bill of exchange cannot be altered without mutual consent of all parties involved.

Is “after date” used in international trade?

Yes, “after date” is a common term in international trade, helping provide clear payment timelines across different jurisdictions.

  • Bill of Exchange: A written, unconditional order directing one party to pay a fixed sum of money to another party.
  • After Sight: Specifies that the payment period will begin once the bill has been presented and sighted.
  • At Sight: Payment is due immediately upon presentation of the bill.

Online Resources

Suggested Books for Further Study

  1. “The Law of Bills of Exchange” by M. A. Courmaguet - A comprehensive legal guide on bills of exchange.
  2. “Bills of Exchange and Promissory Notes” by Stephen M. Garvey - This book provides detailed insights into the practical and legal aspects of these financial instruments.
  3. “Financial Instruments: Equities, Debt, Derivatives, and Alternative Investments” by David Holden - Offers a broader context on different financial instruments, including bills.

Accounting Basics: “After Date” Fundamentals Quiz

Loading quiz…

Thank you for deepening your knowledge about “After Date” and exploring our fundamental quiz questions. Continue to enhance your mastery of financial concepts!

After Sight
AFL-CIO