Evaluated Receipt Settlement – Payment Without Billing

ERS, most commonly used in the manufacturing industry between established trading partners, was introduced in the U.S. by Ford Motor Company, which picked it up when it acquired an interest in Mazda in 1978. How Does It Work? A company agrees to purchase goods using a purchase order with established prices and terms. When the goods are received by the customer, payment is made without the supplier having to bill the customer. The payment to the supplier provides the remittance information,…