There are a lot of people in the Corporate business that deal with heavy invoicing and managing. Due to hefty amounts of data, there can be many issues; most of the time, the management can not understand invoice terms and conditions due to a lack of knowledge. That tends to take up a lot of extra time.
What if we tell you that we can help you have enough knowledge regarding the hardest concept of invoicing payments. So keep on the scroll and enhance your understanding of general payment terms.
Advance payment
This term can also be called PIA. This concept is only utilized with new customers that have a history of payment issues. Most corporate businesses use this as a safe amount to avoid any kind of scams and gain guaranteed payment and profits.
Net payment
This term provides the business with full payment within the common period of service. The majority of the common service time is ten days till 30 days as there are two types of net payments, net 10 and net 30.
Month-end payment
This terminology usually is also called the end-of-the-month payment concept. This is one of the most traditional and old concepts in which the overall payment of the service needs to be paid within the time period settled after the month-end when the invoice was finalized.
The common format of this payment will be as follows;
Payment within 12 days till month end = Net EOM 12.
This provides the data that if your invoice was made on 11 Jan, your payment is due 23 Jan, exactly after 12 days. After that, penalties will be charged.
Upcoming Month payment
This concept describes that the total amount will be paid with the settled due date of the upcoming month. Suppose that your upcoming month payment is 10 MFI. This states that your full payment must be paid by the 10th of next month’s 10th.
Stage payment
This terminology is regarding a settlement of payment with the agreement of both parties on a specific date. The transactions are known as stages. Most of the stages are written as follows.
For example: 20000 = 25 25 35 15
This term provides feasibility and flexibility of payment and provides time for managing records and invoices. This also provides help to the company to reduce taxation and gain additional benefits as well.
