Payment Terms Query

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allan

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#80455 31-Mar-2011 10:04

Okay, a strange little query - but Google, Bing and anything else i've tried are no help in providing me with an actual definition.

What is your understanding of "One Month Net" on an invoice? Is it one month from the date of the invoice, the end of the month it was invoiced in, the end of the next month, or some other variation?

timmmay

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#453748 31-Mar-2011 11:05

Have you tried asking the person who sent the invoice? I would assume it's one month from the date of the invoice.

wreck90

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#453749 31-Mar-2011 11:07

I'd assume one month from invoice date since this could be interpreted in different ways.

It is really up to the invoice issuer to be clearer, so if they complained about non-payment, tell them they should have been more precise.

gjm

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#453778 31-Mar-2011 12:21

Monthly terms can often refer to 20th of the month following invoice i.e anything purchased in March would be due by the 20th of April. As others say however it really is up to the person invoicing you to explain their terms clearly as it could be any of the things that you say.

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