Net Terms Reference Guide

Modified on Thu, Sep 26 at 5:59 PM

When net terms are pulled from your accounting software we read them as text and convert them into numbers. Depending on how your net terms are written they may be converted a different way. 



If your current terms look like this:

Examples

We’ll read as:

Example Invoice Date:

Example Due Date:

Net <days>

Net 10


Net 10 days

Number of days after the invoice date

12/01/2019

12/11/2019

n <days>

n 10


Number of days after the invoice date

12/01/2019

12/11/2019

x% n net <days>

2% 10 net 30

Number of days after the invoice date

12/01/2019

12/11/2019

<days>

10


10 days

Number of days after the invoice date

12/01/2019

12/11/2019

Due on receipt

Due on Receipt

Same as invoice date

12/01/2019

12/01/2019

EOM <days>

EOM net 10


eom 10


Number of days after the last day of the invoice month

12/01/2019

01/10/2020

<days> next month

Net 10 next month


10th of following month


Day of the following month

12/01/2019

01/10/2020

<day> of month

10th of month


10th

The next time that day occurs (could be current or next month)

12/01/2019

12/10/2019



If you are curious as to why net terms are important, check out our other article: How does Ottimate determine the due date of an invoice?


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