Schedule II - Invoicing Requirements - Payment Terms and Accounts Payable Policies

Sep 11, 2026

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Schedule II outlines invoicing requirements, payment terms, and accounts payable policies for all entities. Payment is generally net 120 days based on a valid, dispute-free invoice in acceptable format, using defined invoice and receipt dates. Invoices must be submitted within 30 calendar days and not later than 90 days after goods or services are supplied. It details permitted payment methods, bank instruction timing, handling of taxes and fines, and strict rules for applying invoice amounts, credits, overpayments, and prohibited pre-payment practices.

LanguageEnglish

CategoryInvoices

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Payment Terms

Accounts Payable Policies and Procedures Used at Clorox

Internal Contact Information

SCHEDULE II: INVOICING REQUIREMENTS PAYMENT TERMS Standard payment terms for all entities is net 120 days (unless otherwise set forth in the Agreement), based on an accurate, valid and complete invoice in acceptable format, calculated from the latest of the date (i) set forth on Seller’s invoice, provided the invoice is undisputed and in acceptable format (“Invoice Date”), (ii) Buyer receives Seller’s undisputed invoice (“Invoice Received Date”), or (iii) Buyer receives the Product/Service (“Goods Received Date”) . If there are multiple line-item shipments on one invoice, then the last shipment received in Buyer’s system will be the Goods Received Date. If invoice is received on a weekend or holiday, then Invoice Received Date will be the next business day following the holiday and/or weekend. All invoices must be submitted within 30 calendar days of the latest of the 3 dates listed in this Section tobe considered valid for payment. Buyer will not be responsible for payment of any amounts that are not invoiced within ninety (90) days of the date that the goods or services are supplied or provided to Buyer, and Seller hereby waives recovery of such amounts. Buyer shall transmit invoice payment instructions to its bank (authorizing the bank’s payment to Seller) on the date that the invoice is due. Seller will thereafter receive payment on a date that may be later than the date that the payment is processed and authorized by Buyer. Paymentshall be made via Electronic Funds Transfer or check to the Seller, at Buyer’s election. Seller shall provide such bank accou nt information along with pertinent tax and other data in Buyer’s systems. Where the day nominated or determined for payment is not a business day, the day for paymentshall be the first business day after the day so nominated or determined. Any request for payment of taxes or reimbursement of taxes paid by Seller on behalf of Buyer shall be billed within one year of the date of assignment, transfer or conveyance to which such taxes apply. Under no circumstances shall Buyer be responsible for any fines, interest or penalties assessed against Seller due to Seller’s failure to pay such taxes, including as a result of Seller’s failure to request reimbursement from Buyer. ACCOUNTS PAYABLE POLICIES AND PROCEDURES USED AT CLOROX a. Payments should not be received as “on account”. The payment received must be applied to the invoice number specified on the remittance advice. Payments received may not be applied to either a running balance, or to any payable item not listed as paid on the associated remittance advice. b. Payments will not be made based upon summarized invoices. Payments will be based only on a single, original and uniquely numbered invoice. c. Payments will be made only for the amount shown as “current charges”. Buyer will not pay a “total amount due” that includes any amount shown as “running balance”,“balance forward”, or “past due amount”. d. Credits taken by Buyer will be clearly shown as a separate transaction that is listed on the remittance advice. e. Overpayments that are identified must immediately be either returned to Buyer via check, or will be offset on the next payment. f. Sellers DO NOT have the authority to apply open credits to Buyer open invoices or to other outstanding or future charges. The decisionson where and how to apply credits belong solely to the Clorox Procure to Pay organization. g. Payments will not be made in advance of receipt (pro-forma invoicing) . With the exception of deposits, periodic payments during an extended manufacturing process, and pre-paying for assets (insurance, etc. ), Buyer will not make a payment without the prior receipt of specific goods and/or services. Pre-positioning cash with a Seller in advance of future purchases and/or services, and drawing down that amount as future purchases are made is prohibited. Seller’s cash application should reflect the above procedures. If Seller n

FAQs

What are the standard payment terms and what date determines the payment schedule?

Standard terms are net 120 days, based on the latest of the invoice date, invoice received date, or goods received date. The calculation applies only when the invoice is accurate, valid, complete, in acceptable format, and undisputed.

How long does a seller have to submit invoices for them to be considered valid for payment?

Invoices must be submitted within 30 calendar days of the latest of the three dates listed in the payment terms section.

What are the key accounts payable rules for how payments and credits must be applied?

Payments must be applied only to the specifically identified invoice number shown on the remittance advice, not to running balances or summarized invoices. Credits must be shown as a separate transaction, overpayments must be returned or offset on the next payment, and sellers do not have authority to apply open credits to other invoices.

Sep 11, 2026

Upload by Mason