Account terms are generally going to be one of these types:
Number of days following the invoice date
This is easy to understand, it is simply the invoice date plus the number of days of credit, gives the due date for the invoice.
Examples:
- —30 days from the invoice date. Eg if an invoice date is 6th March, then the due date will be 5th April
- —If the account terms are that the invoice is due the same date as the invoice date, then this is just 0 day terms.
Other ways this might be shown on an invoice:
- —Net 30
- —30 days terms
- —Plus 30
Specific date of a month following the invoice date
This means that invoices will fall due on the same date in each month, but it could be the same month as the invoice (plus 0 months), or the month following the invoice date (plus 1 month), or the second month following the invoice date (plus 2 months).
Examples:
- —Invoice due on the 15th of the month following the invoice date (15th day plus 1 month)
- —Invoice due on the 31st of the invoice month (31st day plus 0 months)
- —Invoice due on the 30th of the second month following the invoice date (30th day plus 2 months)
Other ways this might be shown on an invoice:
- —30 days from statement date (means that the invoice is due on the 30th of the month following the invoice date)
- —30 days following the end of the invoice month (means that the invoice is due on the 30th of the month following the invoice date)
- —Monthly net 30 (means that the invoice is due on the 30th of the month following the invoice date)
- —EOM (means that the invoice is due on the 31st of the same month as the invoice date, which is plus 0 months)
- —End of Month Following (means that the invoice is due on the 31st of the month following the invoice date)
If you have some terms that are the 28th of the month, some the 30th and some the 31st, then be consistent in your system and make them all to be the last day of the month.
