Free 5-day trial After watching this video lesson, you will understand some of the key terms that companies use on the invoices that they send to you.
Learn how to pay your invoices according to these terms so you aren't late.
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So, you made a purchase from this Internet company.
You bought several pairs of shoes and this really nice jacket to go with the shoes.
Let's take a look at what these numbers and letters mean. You know it's not a date because for one, you are nowhere near the month of February and there's no year listed. This particular term actually means that you will get a discount of two percent if you pay within ten days.
Companies use these terms to encourage early payment of the invoice.
In the rental industry, an invoice must include a specific reference to the duration of the time being billed.
So in addition to quantity, price, and discount, the invoice amount is also based on duration.
For your invoice dated August 12 of this year, the 2/10 due date is ten days from August 12 or August 22.
So, that means if you pay your invoice by August 22, you can take a two percent discount. They stand for 'end of month.' So, since this phrase is listed in the due date, it tells you that your payment is due by the end of the month.
In the business world, you might see 2/10 or some other numbers in the same format that tells you what kind of discount you would get if you pay early. You received this invoice in the middle of the month, so that means you only have about two weeks to pay this.