Supplier Guidelines & Information

Payment Terms

Payment Terms for Nonmanufacturing Suppliers

Cisco's standard payment terms for all non-production spend are Net 60. Where possible, Suppliers will also have the option to enroll in Cisco's Accelerated Payment Program, which will enable them to be paid in 20 days with a 1% discount off the total invoice.

U.S. and Canadian Suppliers: Expedited, Discounted Payment Terms Option

Cisco offers expedited, discounted payment terms of 1%/20 net 60 to U.S. and Canadian suppliers. These suppliers must submit invoices to either Cisco U.S. or Cisco Canadian accounts payable addresses, as directed by a Cisco purchase order.

For all invoices submitted to a Cisco accounts payable location outside the United States or Canada, the net 60 payment terms apply with the exception of the following countries.

Geographically Dictated Payment Terms Requirement

Payment terms for the following countries are currently net 30:

Argentina
Brazil
Chile
Colombia
Costa Rica
Croatia
Czech Republic

Egypt
Hungary
Jordan
Kenya
Lebanon
Mexico
Nigeria

Pakistan
Peru
Poland
Puerto Rico
Qatar
Saudi Arabia

Slovakia
Slovenia
South Africa
Turkey
United Arab Emirates
Venezuela

Note: For all countries that are not listed above, Cisco standard payment terms of net 60 apply.

If you have questions not addressed in the FAQs or still have concerns you may contact a Project Management Office representative. Be prepared to reference your supplier notification, supplier number, and other relevant payment or supplier information.

FAQs

What does "net 60" or "net 30" mean?
These terms mean that Cisco will pay the full invoice amount within 60 or 30 days, respectively, of the invoice date.

How was the payment term net 60 selected?
Cisco conducted extensive research, including benchmarking against its technology peers, and has selected the new payment terms to be net 60.

If I opt for the 1%/20 net 60 option, how will I know whether Cisco will pay within 20 days of invoice receipt and deduct 1 percent, or will pay in 60 days of invoice receipt and not take a discount?

Cisco will make every effort to pay an invoice within 20 days of invoice receipt and deduct 1% from the total invoice amount in exchange for paying the invoice in such a short time period. In the event that Cisco is unable to pay an invoice within 20 days of invoice receipt, then Cisco will choose to pay the invoice within 60 days of invoice receipt and Cisco will not deduct the 1% discount.

May I request that the change in payment terms take place at a later date?
Suppliers will be notified by Cisco when the new terms will take effect. Contact a representative from our Project Management Office to discuss changes to your payment terms.

How do these changes affect open purchase orders, new purchase orders issued, and invoices received on or before the effective date?

Invoices against all new purchase orders raised after the effective date will be paid as per the new payment terms. For any approved products already delivered or services already performed without a purchase order, contact the Project Management Office.

What actions do I need to take?
Make sure that your accounts receivable department is aware of the new Cisco payment terms. Suppliers who wish to participate in the Accelerated Payment Program (1%/20 net 60) should contact the Project Management Office.

I have questions about the impact of the new standard payment terms on my business. Whom may I talk to?
For questions regarding the new payment terms, contact the Project Management Office.

Cisco will make every effort to pay an invoice within 20 days of invoice receipt and deduct 1 percent from the total invoice amount in exchange for paying the invoice in such a short time period. In the event that Cisco is unable to pay an invoice within 20 days of invoice receipt, Cisco will choose to pay the invoice within 60 days of invoice receipt and will not deduct the 1 percent discount.