Costs But while receipts may be delayed, costs are due and payable the day they are incurred. Labour must be paid in the month wages were earned. Material must be paid when it is received, sometime before it is shipped. A new venture usually has no credit statue and will be required to pay cash or COD for its materials and supplies, hence these are expended in the months they occur. When the venture has established itself the company may be able to obtain 30-day credit which can have a positive effect on cash flow.