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"25 net 2nd prox" payment terms indicate that the buyer is required to pay the invoice amount within 25 days, but the payment is based on the second month following the invoice date. "Net" means the full invoice amount is due, with no discounts. Essentially, if an invoice is issued in January, the payment would be due by the end of February.
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What is 4 percent 25th prox net 60?
These are accounts receivable and accounts payable terms. "4% 25th prox" means that the payer of this invoice will be granted a 4% discount (usually excluding freight costs) if the bill is paid by the 25th of the next month. "Net 60" means that the full invoice is due 60 days after the invoice date. On a Receivables side, it is important to save envelopes of incoming payments which have NOT met the discount deadline, to document when a payment was mailed. Part of the Payables/Receivables cat-and-mouse game is for a customer (the payer) to PRINT a check in time to deduct the discount - but not MAIL it until the customer has funds to cover it. The vendor (seller who is owed the money) has offered the discount if paid according to the terms, and if the payer does not honor the terms, the payer forfeits the discount. In a dispute, the remittance envelope proves the payment date. In reality, if the payer usually pays timely and is otherwise a good customer, the vendor will grant the discount. It's all negotiable.
What does net mean in math terms for 7th grade?
Net means.the amount of units squared will fit around a box with out over lapping and having enough for the sides to.
What does terms of Net on a contract mean?
If you mean on a contract that you need to pay (invoice), it probably has something like 2/10 net 30. If this is what you are talking about it means that you can take a 2% discount if it is paid within 10 days, otherwise the "net" amount is due in 30 days.
What is the definition of net in math terms?
There are two main uses. One, from graph theory, is essentially the same as a network. A net consists of a number of nodes (points), some of which are connected by lines. The second use comes from basic solid geometry. A net of a three-dimensional obect is a two dimensional shape that can be folded into the 3-d shape.
How much would a sales discount be on an invoice that totals 3000 is dated Jan 14 has terms of 2 10 net 30 and is paid on Jan 25?
60
