Production Part Approval Process (PPAP)

Last Updated: Jun 7, 2019

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Commonly used in the automotive parts manufacturing business.  Under a PPAP billing, the invoice is not payable until the part has been approved and title does not transfer until approval has been granted.  This could be 30-90 days or more from delivery date.  Some terms could be PPAP-45, meaning PPAP approval date plus 45 days to pay.