Explore Our Invoice Discount Example for Communications & Media

On invoice discount example for Communications & Media

in business cash discounts are offered to encourage prompt payments end of month aiding or proximo dating are one of the methods used for cash discounts it's typically written on an invoice like this this is read as 3 10 eom or prox the first number is a percent discount in this case three percent the second number is a date range for the discount so in this case 10 days and Dom or prox means end of the month and what this is saying is that a three percent cash discount may be taken if payment is made by the 10th of the month that follows the sale as a quick example if an invoice for one thousand dollars is dated March 16th with terms 3 10 eom there will be a discount date of 10 days from the end of March so the 10th of April and the discount would be three percent of one thousand dollars so thirty dollars so nine hundred seventy dollars due April 10th for the cash discount when no net payment date is given it's common practice to allow for 2 20 days after the last discount date so in this example one thousand dollars the full invoice amount would be due April thirtieth twenty days after April 10th and Window Tint of month dating for discounts if the invoice date is the 26th or later in a given month it's common practice to add an extra month for the discount as a comparison example if one invoice is dated July 25th and a separate different invoice is dated July 26th and both invoices have the terms 3 15 eof then the invoice dated July 25th would have a discount date of the 15th of the following month so August 15th and the invoice dated July 26th would have a discount date of the 15th of the month following August so September 15th and the net payment date would be 20 days after the discount dates in this case September 4th and October 5th all right my friends hopefully you got something out of this video I do have sh more videos right there for you till next time ah and out of here