Prox term
Prox terms define a specific day of the month as the net due date and optional discount due date. Use prox terms to establish a net due date for all invoices generated during a defined period. For example, paying all invoices due on or before the 25th of the month.
Prox is a term that comes from the retail industry and means "next of month." Invoices that did not meet the designated "cutoff" date for one month, would be paid in the next month. This is similar to the rationale credit card companies use to produce billings; your monthly bill includes charges up to a specified cutoff date. All charges made after that date are put on the following month's bill.
Example
This example shows prox term near the cutoff day. Assume the following information about the sample invoice:
| Invoice Date | January 16 |
| Invoice Cutoff Date | 16 |
| Invoice Amount | 100.00 |
| Prox Day | 15 |
| Discount Percent | 5.0% |
| Net Due Date | 25 |
You would see these results:
|
Discount Date |
Discount Percent |
Discount Amount |
Due Date |
Amount Due |
|---|---|---|---|---|
| February 15 | 5.0% | 5.00 | February 25 | 100.00 |
If the invoice was a day later, January 17, you would see these differences:
-
The discount date would be March 15
-
The due date would be March 25