Commonly used invoice payment terms and their meanings<\/p>\n
This list explains many of the terms commonly used on invoices. Net 7<\/strong> Payment seven days after invoice date Many of them are working out-of-the-box in our Goodwill ERP. However in implementations we sometimes find a very unusual requirement. Like in one case, in Karawang, they sell\u00a0 motorcycles with payment term “after harvesting” (what?) which means the customer will pay you after the next harvest season. Only in Indonesia, grrr…. \ud83d\ude00<\/p>\n Anyway, if you need a special treatment for your business case, let us know. We can help you.<\/p>\n","protected":false},"excerpt":{"rendered":" Commonly used invoice payment terms and their meanings This list explains many of the terms commonly used on invoices. Invoice payment terms Net 7 Payment seven days after invoice date Net 10 Payment ten days after invoice date Net 30 Payment 30 days after invoice date Net 60 Payment 60 days after invoice date Net […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,11,16],"tags":[36,48,43],"class_list":["post-78","post","type-post","status-publish","format-standard","hentry","category-consulting","category-financial-management","category-open-source-erp","tag-goodwill-erp","tag-invoicing","tag-payment-term"],"yoast_head":"\n
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\nInvoice payment terms<\/strong><\/p>\n
\n Net 10<\/strong> Payment ten days after invoice date
\n Net 30<\/strong> Payment 30 days after invoice date
\n Net 60<\/strong> Payment 60 days after invoice date
\n Net 90<\/strong> Payment 90 days after invoice date
\n EOM<\/strong> End of month
\n 21 MFI<\/strong> 21st of the month following invoice date
\n 1 % 10 Net 30<\/strong> 1 per cent discount if payment received within ten days otherwise payment 30 days after invoice date
\n COD<\/strong> Cash on delivery
\n Cash account<\/strong> Account conducted on a cash basis, no credit
\n Letter of credit<\/strong> A documentary credit confirmed by a bank, often used for export
\n Bill of exchange<\/strong> A promise to pay at a later date, usually supported by a bank
\n CND<\/strong> Cash next delivery
\n CBS<\/strong> Cash before shipment
\n CIA<\/strong> Cash in advance
\n CWO<\/strong> Cash with order
\n 1MD<\/strong> Monthly credit payment of a full month’s supply
\n 2MD<\/strong> As above plus an extra calendar month
\n Contra<\/strong> Payment from the customer offset against the value of supplies purchased from the customer
\n Stage payment<\/strong> Payment of agreed amounts at stages<\/p>\n