The Lowdown on Typical Payment Terms in Your Fuel Report
OPIS wholesale rack reports were created to provide a font of information about the markets from which you purchase fuel.
These reports are essential tools to help you buy fuel smarter and save money. But, as we discussed in How to Read Your Wholesale Rack Report, it’s important to understand the many moving parts of your report, so you don’t overlook important data or confuse one price for another.
This post will give you the 411 on typical payment terms in your fuel report.
To review a little, our standard reports feature a column labeled “Terms” that lets you know if a supplier offers a discount for prompt payment.
Remember! It all depends on what type of report you receive whether or not you will see those discounts reflected in the listed price.
- Gross reports do NOT include the discount in the listed price.
- Net reports will have discounts factored into prices.
Your report will clearly state whether prices are “gross” or “net” in the top header.
Also remember! Terminal reports do not include a “Terms” column.
You will see terms listed, like this, in your standard report:
OK, So What The Heck Do All Those Terms Mean?
Here is an easy reference guide to some of the most commonly seen terms.
If you are new to OPIS reports, this graphic might be a great reference to print out and stick near your monitor, so you can easily see what incentives are offered in a particular location. It’s also a helpful tool to share with newer members of your team, who may be unfamiliar with the fuel procurement process.
In many cases, we should add, the very concept of “prompt payment” is being made moot by the advent of Electronic Funds Transfers (EFTs). But, the terms remain as legacy.
Hope this clears up any lingering confusion about the terms column. As always, if you have any questions, leave us a comment!