Answer / Gourang Kumar

Payment terms management involves setting and enforcing the conditions under which a customer can make payments for purchased goods or services. Here's an example approach:

1. Establish standard payment terms (e.g., net 30 days, net 60 days).
2. Communicate payment terms clearly to customers through invoices and contracts.
3. Monitor customer adherence to payment terms and follow up on late payments.
4. Implement appropriate credit controls (e.g., setting credit limits, using credit reports) to mitigate the risk of non-payment.

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