MSME supplier ageing: a buyer-side review checklist

An MSME review should not rely only on days since invoice. Capture the supplier's eligible status, the date of acceptance or deemed acceptance of goods or services, any written payment term, disputes and actual payment dates.

Official Ministry guidance summarises the delayed-payment provisions for eligible micro and small enterprise suppliers. It notes that an agreed period cannot extend beyond 45 days from acceptance or deemed acceptance, with statutory consequences for qualifying delays. Eligibility and the facts of acceptance still need review. Ministry of MSME — delayed payments

• Supplier legal name and Udyam details supplied to the buyer.
• Classification and activity relevant to eligibility.
• Purchase order, invoice and receipt references.
• Delivery/service date and acceptance or deemed-acceptance date.
• Written credit term and contractual due date.
• Dispute, rejection or quality issue with evidence and dates.
• Amount outstanding, payment date and days outstanding.
• Owner, next action and escalation date.

1. Obtain current supplier declarations and supporting registration information.
2. Reconcile the supplier ledger to invoices, receipts, debit notes and payments.
3. Calculate ageing from the legally relevant date after checking acceptance facts.
4. Separate genuine documented disputes from administrative delay.
5. Escalate approaching or overdue items to the authorised finance and legal reviewers.
6. Retain the decision, payment evidence and any accounting or disclosure working.

Do not assume every entity described as an MSME has identical rights for every activity or transaction. Do not calculate statutory interest or make a legal conclusion from a spreadsheet alone. The Ministry's delayed-payment and ODR materials should be read with the Act, current rules and transaction evidence. Ministry of MSME — ODR guidelines

General-information disclaimer: This checklist is educational, not legal, accounting or tax advice. Obtain qualified review for eligibility, disputed acceptance, interest, disclosures, recovery or litigation.