Credit Terms

Credit terms are a listing of the amounts & timing of payments between a buyer and a seller, and the discount percent if the payment is made within a certain time period. The equation for setting up the terms is: n/10 = EOM. The EOM means “end of month” and most invoices are due for payment in 30 days, thus making the EOM 30 days. The “n” in this case means the discount percent if the payment is made within 10 days.

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