payment terms - what is meant by Prorata
This query is : Resolved
09 August 2010
We have a work order which reads "60% payment shall be released on prorata supply, 10% on prorata installation....". What is meant by prorata?
09 August 2010
Prorata means : on the same ratio.
i.e > 60 % pay will be on prorata supply.
that means... as & when you supply goods the payment will be released in same ration.
suppose in first lot you supply 50 % on total goods then the payment released will be 50 % of total 60 %.
If in next lot you supply another 30 % > another 30 % of total of 60 % will be released.
same will happen at the time of installation too.
i.e > 60 % pay will be on prorata supply.
that means... as & when you supply goods the payment will be released in same ration.
suppose in first lot you supply 50 % on total goods then the payment released will be 50 % of total 60 %.
If in next lot you supply another 30 % > another 30 % of total of 60 % will be released.
same will happen at the time of installation too.
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09 August 2010
agreed with Mr. jha.
PRO RATA is the basis for allocating an amount proportionally to the items involved. An amount may be proportionally distributed to assets, expenses, funds, etc
PRO RATA is the basis for allocating an amount proportionally to the items involved. An amount may be proportionally distributed to assets, expenses, funds, etc
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