Definition 30 days nett

Elvie

I am after some advice regarding the industry recognised definition of the term "30 Days" with regard to Credit Control, after having been chased for payment of an invoice with 30 day terms dated 6th June 2008.

In my firm we take 30 days to mean the end of the month following the invoice date and we chase debts accordingly. I understand that 30 days means you can chase exactly 30 days after the invoice date - but I feel this is impractical from a purchaser point of view as it could result in the processing of a payment run on every day that an invoice becomes due.

I would appreciate any views/comments on the general understanding of the term.

mary@adorable.co.uk

30 days nett

There is often discussion and confusion surrounding this terminology, however my understanding of it is 30 days nett monthly which is 30 days end of month.

If an invoice states 30 days that would usually concur to 30 days from date of invoice.

Best advice is to be clear on your own invoices to state 30 days from date of invoice or 30 days end of month whichever terms you offer.

Always check with your suppliers their own payment terms in advance of placing the order, never wise to assume.

Many small firms only run their creditors payemnts once a month usually at the end of the month therefore taking 30 days end of month regardless- it may also be worth checking with your suppliers if they offer a payment discount for any early payment terms.

Hope that helps!

Elvie

Yes it does help. Thanks Mary