What Is a Net Term?

Net terms are used to establish a net due date based on a set number of days from the invoice date. The program calculates the discount amount and the discount date from the discount percent and the discount day.

For the discount logic to be valid, both the discount percent and discount day must be entered. The discount percent cannot be greater than 100, and the discount day must be less than the net due day.

Example

$100.00 invoice dated 3/19

Discount% = 10.000

Discount Day = 15

Net Day = 30

Due Date = 4/1

Discount Date = 3/16

Discount $= $10.00 is paid by discount date