Three days recovered on a 38.5-million-dollar invoice, and five days refused, carry the reasoning in a composite distributor's GF583 Unit 4 disbursement timing memo. Searches like "gf 583 unit 4 assignment example", "gf583 unit 4 sample" and "gf583 unit 4 example" land here.
What a finished GF583 Unit 4 disbursement timing memo looks like
A memo of about three pages to the treasurer, recommendation in the opening paragraph, then a table of costs and a few paragraphs on supplier terms. The trigger is week seven of the forecast, when a pre-season vaccine invoice of 38.5 million, a biweekly payroll of 9.4 million with tax deposits and an estimated tax payment of 11.2 million all fall on one Friday, 59.1 million in total. Under the current habit, checks print on Tuesday and clear about three days before the due date. An electronic credit settling on the due date keeps 38.5 million in the account three days longer, worth 16,800 at the 5.30 percent revolver rate. Applied to 1,099.6 million of annual manufacturer payments, and valued at a blend of borrowing and investing rates, the change is worth about 422,500 a year.
How a GF583 Unit 4 example is structured
The memo separates three kinds of timing that a payables clerk would treat as one. Paying before the due date comes first, and the memo shows it costs money with no return, since the manufacturer's terms carry no early-payment discount. Paying on the due date is the recommended position, achieved by electronic credit with a settlement date rather than by a mailed check whose clearing day nobody controls. Paying after the due date is priced only to be rejected: five days late on the vaccine invoice would save about 28,000, while the manufacturer's pre-season program, 120-day dating on 180 million of purchases, is worth roughly 1.96 million a year. A section on discount suppliers then keeps day-ten payment where terms of 1/10 net 30 apply. Implementation steps and a draft vendor notice close the memo.
A Friday carrying 59.1 million
Vaccine invoice, payroll with tax deposits and an estimated tax payment land together in week seven, which is why the memo exists and why that week is valued at the revolver's rate.
Checks that leave too soon
Tuesday check runs clear roughly three days ahead of the due date. Nothing in the manufacturer's terms rewards early settlement, so the memo treats those days as a cost chosen by habit.
Settlement dated to the due day
An electronic credit instructed to settle on the due date pays on time to the day. On this invoice that is worth 16,800; across a year of manufacturer payments, about 422,500.
Five days late, priced and refused
Holding the vaccine payment five days past due would save roughly 28,000 while putting 120-day dating on 180 million of purchases, worth about 1.96 million a year, at risk.
Discount vendors stay on day ten
Suppliers offering 1/10 net 30 are paid on the tenth day, since passing up that discount amounts to borrowing at about 18.4 percent, well above the 5.30 percent line.
Where marks go in GF583 Unit 4
Timing memos in GF583 are typically graded on whether each recommendation carries a price, so a paper proposing electronic payment without the three days it saves and what those days are worth collects only part of the analysis credit. Stretching payments beyond terms, presented as a free source of cash, is the recommendation instructors challenge most sharply, because its cost arrives through the supplier relationship rather than through interest. Applying one policy to every vendor misses the discount arithmetic: forgoing 1/10 net 30 costs about 18.4 percent a year, far above the revolver. A memo valuing the recovered days at the investment rate, in a week the forecast shows as borrowing, has picked the wrong rate. Omitting the vendor notice and the approval change a new payment method needs leaves the recommendation unimplementable.
Get a GF583 Unit 4 example written to your instructions
What does your Unit 4 case supply: invoice amounts, terms, the payment method in use, a week the forecast flags? Pass those along with the prompt and rubric. Each timing choice is then priced against the correct rate for that week in a custom memo that arrives in 24-48h, and the first one costs nothing.
GF583 Unit 4 questions, answered
Is paying on the due date instead of early fair to suppliers?
Yes, when the terms say so. Terms define when payment is owed, and paying on that date honors them exactly. A memo can note that some firms pay small suppliers early as a matter of policy, which is a legitimate choice whose cost should be stated. What most rubrics treat as poor practice is paying after the agreed date without the supplier's consent.
Could the firm negotiate longer terms instead of timing payments?
Often, and the memo can mention it as a separate lever. Longer terms change when payment is owed, which is cleaner than managing release dates, but suppliers usually price them in, through a higher invoice or a withdrawn discount. A memo comparing the two should state the cost of each on the same basis, dollars a year, before recommending either.
How is the cost of a forgone discount calculated?
Divide the discount by the amount paid after taking it, then multiply by the number of periods per year that the extra days represent. For 1/10 net 30, that is 1 divided by 99, times 365 divided by 20, about 18.4 percent. Compounding the same figure gives roughly 20.1 percent. Either is acceptable in most sections if the method is stated.