Monthly settlement means that the payment is settled on a monthly basis.

This should be stated in the contract when signing a sales contract with the customer.

Tax is generated when the invoice is issued, and the amount of VAT credit is deducted by the accountant from the VAT input tax of this month, which is the VAT payable for this month. The city maintenance and construction tax and education fee surcharge are calculated according to the local applicable tax rate based on the VAT payable.

Issuing invoices generates income and carries forward costs at the same time. The difference between income and cost, after offsetting the period expenses, forms profit. The profit is first prepaid quarterly for income tax, and then the corporate income tax is settled and paid annually.

For accounts receivable that are settled monthly in the contract, if the payment is not received on time, the financial staff should communicate with the salesperson in a timely manner (the salesperson should also have a ledger record), and the salesperson should collect the payment in a timely manner. This can be done by phone, letter or door-to-door collection. For customers who do not return the payment for a long time, goods should not be sold to them. Salesmen should rate the payment status of customers and eliminate those customers who are not trustworthy. Generally, companies have assessment indicators for salesmen's sales and payment collection, and they are linked to the salesmen's performance bonuses.