Payment terms in Morocco: what law 69-21 says and how to compute the due date

What does law 69-21 say about payment terms?

Law 69-21, which amends the Moroccan Commercial Code, governs the payment term between businesses to reduce the late payments that drain suppliers' cash. Without an agreement between the parties, the term is 60 days from the invoice issue date. A term set by contract cannot exceed 120 days from that same date. Derogations exist for certain sectors with specific or seasonal activity.

In principle, the invoice must be issued no later than the end of the month of delivery or service; otherwise, the term runs from the end of that month. Invoicing late therefore mainly delays your own collection.

The reporting and fine mechanism targets companies above a turnover threshold and was rolled out gradually by company size. Thresholds and procedures may change: check the texts in force and the DGI guidance with your expert-comptable (chartered accountant).

How do you compute an invoice's due date?

The usual method is to add the agreed number of calendar days to the invoice issue date, without counting the invoice day; weekends and public holidays count like any other day. For an invoice dated 15 March with no agreed term, the 60-day legal default applies: 16 days remain in March (16 to 31), then 30 in April, making 46; 14 more are needed in May. The due date is therefore 14 May.

The table below applies common payment terms to the same invoice. Watch out for 90 days end of month: 90 days after 15 March is 13 June, and the end-of-month rule pushes the due date to 30 June, 107 days after the invoice, below the 120-day cap; 120 days end of month would almost always exceed it. Also record the actual date of every payment: an invoice due on 14 May and paid on 2 July is 49 days late.

Reporting to the DGI and the fine: what does a late payer risk?

Companies above the threshold set by the texts periodically report their payment delays to the DGI online, listing in particular the invoices paid late or still unpaid beyond the legal or agreed term.

Late payment triggers a pecuniary fine, computed from Bank Al-Maghrib's policy rate for the first month of delay, then increased for each additional month or part of a month. It is paid to the State: it is not compensation for the supplier, who must still collect the receivable. Percentages change, notably with the policy rate: check the current parameters with the DGI.

What should the invoice and the contract say?

The payment term is decided before the sale, not when chasing payment. Write it into your general terms of sale, the accepted quote or the contract, then on every invoice. An agreed term must be in writing and stay below the legal cap; for a large contract, a schedule (deposit, interim payments, balance) limits your exposure.

• A clear condition: payment within 60 days of the invoice date, rather than a vague payment as agreed.
• The computed due date, written on the invoice.
• The accepted payment methods (bank transfer, cheque, LCN bill of exchange) and your bank details (RIB).
• The reference of the purchase order or contract that sets the agreed term.
• Any deposit paid, the balance due and the usual details (ICE, IF, RC): an incomplete invoice means a delayed payment.

How do you chase payments and track your DSO?

To measure customer behaviour, track days sales outstanding (DSO): customer receivables divided by turnover including VAT for the period, multiplied by the number of days. With 270,000.00 DH of receivables at the end of a 90-day quarter and 450,000.00 DH of turnover including VAT over that quarter, DSO is 270,000.00 ÷ 450,000.00 × 90 = 54 days. With 45-day terms, customers pay on average about 9 days beyond them.

For follow-up, an effective method always goes through the same steps, and every exchange is logged in the customer record.

• A few days before the due date: a courteous reminder with the invoice and your bank details.
• The day after the due date: a written reminder (number, amount, due date).
• After one to two weeks: a call and agreement on a precise date.
• After one month overdue: a formal reminder and no new deliveries beyond the credit limit.
• As a last resort: formal notice, after advice from a lawyer or your accountant.

How do you protect your cash and avoid common mistakes?

Ask for a deposit on large or custom orders: on an order of 48,000.00 DH including VAT, a 30% deposit means 14,400.00 DH collected straight away, and only the balance of 33,600.00 DH remains at 60 days. For a customer on credit terms, an LCN bill of exchange whose due date matches the agreed term secures the payment date, and a cheque should be banked without waiting. Also set a credit limit per customer.

The most common mistakes are easy to avoid.

• Leaving the term implicit, without writing it on the quote, the contract and the invoice.
• Invoicing several weeks after delivery, which delays collection by the same amount of time.
• Counting the due date from delivery instead of the invoice issue date.
• Accepting an LCN whose due date exceeds the agreed term or the legal cap.
• Forgetting your own supplier terms: your company can also be the customer paying late.

How does SOGESTIO help you meet and enforce payment terms?

In SOGESTIO, each customer gets a payment condition: cash, 7, 15, 30, 45, 60 or 90 days, or custom. The due date of each invoice is computed automatically, and the PDF shows the payment terms, the amount already paid and the balance due. You set a credit limit per customer; the dashboard shows receivables, unpaid invoices and overdue amounts, and the reports compute the average payment time (DSO).

With the Pro and Groupe packs, the Bank and cash module tracks cheques and bills of exchange (LCN) with their due date and status, supplier invoices carry their own due dates, and a 13-week cash forecast combines customer receivables and supplier payables. SOGESTIO does not produce the payment-delay report filed with the DGI: it centralises invoice dates, due dates and payment dates, for you to use with your accountant. Free 14-day trial, no card required.