DSMR432
Unit VI: Invoice Math Terms of sale, Dating
Section 1; Terms of Sale Pg. 273-286
Trade Discounts
deducted from the list price; billed cost = list – trade disc.
Quantity Discounts given regardless of when invoice paid
Cash discounts
given based on payment date
Section 2; Dating Pg. 287-298
Type
Regular 2/10 net 30
X 3/10-90x
8/10 EOM*
5/10 ROG rec’d 4.16
Adv/Post 3/10 net 30 a/o 10.1
Inv Date
11.16
6.7
3.17
4.4
8.18
Disc
11.26
9.17
4.10
4.26
10.11
Discount date hint
+10 from invoice date
+10+90 from invoice date
+10 from EOM after invoice date
+10 from ROG
+10 from A/O date
Net
12.17
10.7
4.30
5.16
10.31
Past
12.18
10.8
5.1
5.17
11.1
Difference between Discount and Net is always 20 days, except:
• Regular where it is technically 30 days after invoice date
• ADV/POST where it is last day of month in which discount is earned (this is a bad e.g. as
discount and net are 20 days apart either way)
Difference between Net and Past due is always 1 day
*EOM invoice date falling on or after 25th of month;
• e.g. invoice is 3/26, terms 2/10 discount date becomes 5/10 instead of 4/10 and net date becomes
5/30
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1/2
Regular
Discount = 10 days
From invoice
X, EOM,
ROG
Discount = 10 after end of invoice month or
10 after ROG or
100 after invoice
Adv/Post
Discount = beginning at a future date and then adding
so many days to the future date
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Net = 30 from invoice date
2/2
Net = 20 from end of
discount date
Net = last day
of month in
which
discount is