Net Monthly
Mezza
Registered Posts: 8 New contributor ๐ธ
Hi, I've just been doing mock questions for my level 2 ITBK exam and one question asked what the final payment date would be for an invoice dated 25 Aug with payment terms of Net Monthly. I put 30 Sept and this was apparently wrong so I googled it and it says I'm right ?
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Comments
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Not sure tbh, got the question?0
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The question was....A supplier called Archer Joinery has sent an invoice for 1340.00, the date of the invoice is 25 Aug, their payment terms are Net Monthly. Give the date by which the supplier should receive payment.0
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Wonโt it be the 25th of September?0
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Yh it will be.0
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So the invoice was received on the 25th August. Most businesses have a month to pay for the invoice. So you just add 30 days to the original date. Not sure how you got 30th of Sep from.0
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The answer was 31st August, which would only give the customer 6 days to pay. So my thoughts were it is too close to the end of Aug so net monthly would take it to the end of the following month (Sept). Net 30 days is a different payment term.0
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Oh ok. Is this bookkeeping transactions?
Did it so long ago lol0 -
It was the Introduction to Bookkeeping module0
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It must be bookkeeping transactions! Everybody needs to start with that.
Hope you understand the double entry0 -
Hi Mezza,
It should be 30th of August because net monthly means the end date of month of invoice. The customer would get 6 days for payment it doesn't matter.
RAKTHER
Training Coordinator, Osborne Training0 -
Hi Mezza,
It should be 30th of September because net monthly means Payment due on last day of the month following the one in which the invoice is dated. If it said 30 days of invoice then it should be 25th of September.
RAKTHER
Training Coordinator, Osborne Training0
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