Invoicing cycle and invoice payments

Invoicing cycles and payment terms

All aggregate invoices including both warehousing and logistics costs are sent out once a month (at the beginning of each month), with only exception of VNL invoices. VNL invoices are sent bi-weekly. Also some freight related transactions are invoiced bi-weekly - depending on the freight company. For example, Posti, GLS, Budbee, DHL Express Finland/Estonia and DB Schenker transactions are invoiced bi-weekly.

The only exception is when invoicing transactions are less than 80€ / 800SEK. If this threshold is not exceeded, transactions will be automatically forwarded to the next invoicing period. 

Regarding our payment terms, our payment terms are 10 days net and it applies to all customers. Our invoicing dates are the 15th and the last day of each month. However, in reality, invoices are sent 5 to 15 days after the actual invoice date due to our logistics partners' invoicing cycles and the time it takes to process all invoices we receive from our sub-contractors. Therefore, our payment terms vary from 15 to 25 days depending on the actual date the invoice is sent out. 

For example, the invoice below has an invoice date of 16.3. However, the invoice has been sent out 6 days later, so therefore, the payment term is 16 days.

Also note that due to our complex invoicing process, in some cases the order date does not match with the invoicing period. For instance, if an order has been shipped on the last day of the month, it might be invoiced in the next invoicing period.

Invoice payment

The invoicing currency for the warehouse in question can be seen from the Warehouse specification sheet. The company has separate accounts for different currencies. OGOship accepts payments only in the currencies listed on the Warehouse specification sheet.

All payments will be paid to one of OGOship's company accounts as a bank transfer. The company accounts are currently operated by the Nordea bank in Finland, including also the SEK account, and Sweden. The company accounts are given in the IBAN format. If an international bank transfer is used, the payment costs must be divided as follows: the invoice payer is responsible for the costs incurred by his/her own bank and the payment receiver (OGOship), is responsible for the costs incurred by the receiving bank.

The invoicing address used should be input by the Merchant to the Merchant setting page. Email (PDF) invoices are the default invoicing method but paper invoices and electronic invoices (in selected countries) are also available.

If direct bank transfers cannot be made, we have a paypal account as a temporary solution (can be applied for a maximum of half a year). However, we will charge 5% on top of the total sum of the invoice (incl. VAT) because of the paypal fees and additional accounting costs these transactions create. The 5% additional fee must be calculated by the merchant and included in the payment.

 

Please see the details below regarding paypal payments

Paypal address: timo@ogoship.com

Also remember to include your company name and invoice number in the reference/message section.


Invoice value added tax (VAT)

VAT will be added to the invoice depending on where the company to be invoiced is located and where the shipments are sent out from. Shipments sent out from the Swedish warehouses are invoiced with Swedish VAT 25 % and all other warehouses with Finnish VAT 24 %. If a company receiving the invoices is outside the VAT region of the warehouse in question, the invoice will be sent out with VAT 0: transactions are subject to the reverse charge. However, for EU companies, a valid VAT-code is required to be entered into the Merchant setting page in myOGO to enable VAT 0 invoices. Companies outside the EU need a valid registry/company number in order to receive VAT 0 invoices. In case the VAT code is not input or is invalid, VAT will be added to the invoice.

 

Late payments 

In case an invoice is left unpaid, OGOship will send out payment reminders. After two reminders, overdue invoices will be transferred to a collection agency. Interest on overdue payments as well as collection fees will be claimed from your company.The late payment fees and reminder invoice fees will be invoiced as separate invoices after they accumulate.

    1st reminders are sent 7-9 days after the due date,

    2nd reminder 7-9 days later,

    3rd step: the collection of the receivable will be assigned to the collection agency 


If a merchant has multiple overdue invoices, Ogoship may suspend the merchant. When the suspension of the merchant is applied, no shipments will be sent out. Shipping will be opened when all open invoices are settled.

Read next about claims and compensations.