Abbreviations of Selling Terms
Selling terms are normally expressed in abbreviated forms, which sometimes employ the use of symbols, but are generally self-evident. The following list will illustrate this point and symbols will be explained where used:
- N30
- Net 30 days.
- 2%/10 or N30
- 2% cash discount permitted in 10 days, maturity in 30 days.
- 2%/30
- 2% trade discount. Credit terms are 30 days. After that period, most concerns charge interest. Trade discount is not affected.
- 3%/10;2%/10/60 extra, N71
- 3% cash discount if paid in 10 days, 2% trade discount permitted in seventy days (10 days plus 60 extra), full amount due on seventy-first day.
- Net 10 prox or 10 EOM Prox.
- Is the abbreviation for proximo or following month. EOM symbolises (Equivalent Terms)end of month. In both cases the invoice is due the tenth of the month following the month of invoicing, except that invoices of the last five days of the month are usually considered as arising in the following month. Depending on date of invoicing, under these terms, the length of the terms can vary from days (invoiced on 25th of month) to 45 days (invoiced on the 26th) or an average of 30 days.
- 10th & 25th
- Purchases made between the 1st and 15th of the month are due on the 25th, purchases made between the 16th and 30th are due on the 10th.
In certain industries where the principal sales may occur in one season of the year, suppliers may extend seasonal dating. Seasonal dating usually indicates that the invoice will be payable on a certain date past the principal selling season, or on certain terms after the principal selling season. For instance, seasonal selling terms might be 10 days October 1st which means the invoice is payable October 11th. As an example, an invoice dated January 10th with this season dating is due on October 11th. The purpose of seasonal dating is to encourage the placing of orders well before the regular selling season so that production may be scheduled in a more orderly manner.