Payment terms decide when a bill is actually late, when a discount expires, and when a vendor can start charging interest. This page defines every common US invoice payment term, shows the exact due date each one produces, and explains what belongs in the terms and conditions block. Upload an invoice to pull its terms, invoice date, and due date into a spreadsheet automatically.
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Payment terms look like two words in a corner of the invoice, and they set the entire cash timeline for both sides. Most of the arguments in accounts payable start with two parties reading the same term differently. Net 30 from the invoice date and net 30 from the delivery date are a week apart. Net 30 EOM is not net 30 at all. And a discount clause that nobody entered into the accounting system quietly expires every month.
The seller counts from the invoice date. The buyer counts from the day the invoice landed in AP, or the day the goods arrived. On a net 30 invoice those three dates can sit ten days apart, and the vendor calls you late while your ledger says you are early.
Net 30 EOM means 30 days after the end of the month the invoice was issued, which on a March 3 invoice is April 30, not April 2. Net 30 ROG counts from receipt of goods. Both get keyed as ordinary net 30 and both produce the wrong due date.
A 2/10 net 30 term is worth roughly 36% annualized if you take it. It is also worth nothing if the discount window is not in the system, because the invoice sits in an approval queue until day 14.
A terms and conditions block that promises interest on overdue balances is only useful if the rate is lawful in your state and the customer agreed to it before the work started. Bolting a fee onto an invoice after the fact rarely survives a dispute.
The payment term is printed on the document. The due date has to be typed into accounting by a person reading that document. That single retype is where a large share of wrong due dates, missed discounts, and duplicate chasing emails begin.
There are only about a dozen payment terms in common US use, and each one produces a single, unambiguous due date once you know which date it counts from. Set them deliberately on the invoices you issue, read them carefully on the invoices you receive, and get the term, the invoice date, and the due date into your accounting system without retyping them. The tool at the top of this page captures all three fields from a PDF, a scan, or a photo.
Net 10, net 15, net 30, net 45, net 60, and net 90 all count calendar days from the invoice date unless the invoice says otherwise. Net 30 is the default across most US B2B trade.
Due on receipt, due upon receipt, and COD expect payment as soon as the invoice or the goods arrive. Common for one-off service calls, repairs, and new customers with no credit history.
2/10 net 30 gives the buyer 2% off if they pay within 10 days, with the full balance due on day 30. The same structure appears as 1/10 net 30 and 2/15 net 45.
EOM counts from the end of the invoice month. ROG counts from receipt of goods. MFI means payment falls on a fixed day of the following month. Each moves the due date away from the invoice date.
CIA (cash in advance), PIA (payment in advance), and part-payment deposits shift the risk to the buyer. Standard for custom work, long lead times, and unproven accounts.
Upload the invoice and the AI reads the payment term, the invoice date, and the stated due date together, so the due date in your ledger matches the document.
Whether you are setting terms on invoices you issue or interpreting terms on invoices you receive, the sequence is the same.
Decide, in writing, whether the term counts from the invoice date, the delivery date, or the end of the month. Put that sentence in your terms and conditions so it is never inferred.
Convert the printed term into one calendar date before the invoice reaches approval. The table below does this for every common term using a January 10 invoice.
Tip: Discount deadlines deserve their own date field, separate from the due date.
Upload the invoice and export the payment term, invoice date, and due date to Excel, CSV, or JSON so the ledger and the document agree.
Payment terms sit on both sides of every trade transaction, so both sides carry a version of the same problem.
Reading terms correctly is what keeps the aging report honest and the early-payment discounts captured rather than lapsed.
Posting a bill with the wrong due date distorts the cash forecast and the aging buckets for every client you touch.
The terms you print decide how long your money sits with a customer. Shortening from net 60 to net 30 is often the cheapest cash flow fix available.
Negotiated terms in the master agreement have to survive onto the invoice, or the invoice wins the argument.
Invoice payment terms are the agreed conditions that state when and how an invoice must be paid. They set the payment deadline (usually expressed as net 10, net 30, or due on receipt), any early-payment discount, the accepted payment methods, and the consequence of paying late. The term converts the invoice date into one specific due date, which is the date the amount becomes overdue. Last updated July 2026.
Net 30 is the most common term in US business-to-business trade, followed by net 15, due on receipt, and net 60. The table below lists every term you are likely to meet, what it means, and the exact due date it produces on an invoice dated January 10.
| Term | What it means | Due date (invoice dated Jan 10) |
|---|---|---|
| Due on receipt | Payable as soon as the invoice is received | Jan 10, or the day it arrives |
| Net 7 | 7 calendar days from the invoice date | Jan 17 |
| Net 10 | 10 calendar days from the invoice date | Jan 20 |
| Net 15 | 15 calendar days from the invoice date | Jan 25 |
| Net 30 | 30 calendar days from the invoice date | Feb 9 |
| Net 45 | 45 calendar days from the invoice date | Feb 24 |
| Net 60 | 60 calendar days from the invoice date | Mar 11 |
| Net 90 | 90 calendar days from the invoice date | Apr 10 |
| 2/10 net 30 | 2% discount if paid in 10 days, full balance at 30 | Discount Jan 20, balance Feb 9 |
| 1/10 net 30 | 1% discount if paid in 10 days, full balance at 30 | Discount Jan 20, balance Feb 9 |
| EOM | Due at the end of the invoice month | Jan 31 |
| Net 30 EOM | 30 days after the end of the invoice month | Mar 2 |
| 15 MFI | The 15th of the month following the invoice | Feb 15 |
| Net 30 ROG | 30 days from receipt of goods, not the invoice date | 30 days after delivery |
| COD | Cash on delivery, paid when the goods arrive | Delivery day |
| CIA / PIA | Cash or payment in advance, before any work ships | Before delivery |
Net 30 means the full invoice balance is due 30 calendar days after the invoice date, with no discount for paying earlier. Calendar days include weekends and holidays, so a January 10 invoice is due February 9 even if that lands on a Sunday. Net 30 is a short line of trade credit from the seller to the buyer. Our net 30 payment terms guide covers the variations in full.
Due upon receipt means payment is expected immediately, on the day the customer receives the invoice, with no credit period at all. In practice most businesses treat it as due within a few business days, because there is rarely a defined grace period. It is used for one-off jobs, repairs, small service calls, and customers with no established credit. See due upon receipt explained.
2/10 net 30 means the buyer may deduct 2% from the invoice total if payment reaches the seller within 10 days, and otherwise owes the full amount on day 30. On a $10,000 invoice the buyer saves $200 by paying 20 days early. Skipping that discount is expensive credit for the buyer: roughly 36% on an annualized basis. The mechanics, including the gross and net recording methods, are worked through in our early payment discount guide.
Unless the invoice says otherwise, net terms count from the invoice date. Terms marked ROG (receipt of goods) count from delivery, and terms marked EOM count from the last day of the invoice month. Because buyers often assume the clock starts when the invoice reaches their AP inbox, the safest practice is to state the trigger date explicitly in the terms and conditions.
A workable invoice terms and conditions block answers five questions in plain language: when payment is due, which date the term counts from, which payment methods are accepted, what happens if payment is late, and who to contact about a dispute. Keep it short enough that a person reads it.
Yes, if the customer agreed to it before the work was done and the rate is lawful where you operate. Late fees on B2B invoices are a contract term, not an automatic right, so a fee that first appears on the invoice itself is easy to challenge. US states cap the interest that may be charged on overdue commercial balances, and the caps differ by state, so set the rate against your own state law and reference the clause in your contract rather than copying a figure from a template.
Net 30 is the standard most small businesses default to, but it is not automatically the right choice. Net 15 or due on receipt suits fast-turnaround service work where the cash gap hurts. Net 30 suits repeat B2B customers who have their own approval cycles. Net 60 and beyond generally appear because a larger customer imposed them. Shortening terms is usually a faster cash flow improvement than chasing existing invoices harder.
Net 30 keeps working capital with the seller and is easier to enforce. Net 60 is a concession that buys goodwill or wins the account, and it doubles the cash you have tied up in receivables at any moment. If a customer demands net 60, price it: 30 extra days of credit on a $50,000 annual account is real money, and an early-payment discount is often the cheaper way to give ground.
On the buying side, the payment term is what turns an invoice into a scheduled payment. It determines which aging bucket the bill lands in, whether a discount is still available, and when it joins the next payment run. That is why the term and the due date belong in the ledger as data, not as text inside a PDF. Reading them off the document by hand is the step that produces wrong due dates, so most teams capture them alongside the totals during invoice data capture and review the values before posting.
Once the due dates are right, the rest of the AP calendar works: the accounts payable aging report buckets correctly, the payment run picks up exactly the invoices that are due, and the days payable outstanding figure reflects the terms you actually negotiated. Every term on this page is also defined, alongside the rest of the AP vocabulary, in our accounts payable glossary.
Invoice payment terms are the conditions that state when and how an invoice must be paid. They set the deadline (net 30, net 15, due on receipt), any early-payment discount such as 2/10 net 30, the accepted payment methods, and what happens if payment is late. The term converts the invoice date into a single due date, which is the date the balance becomes overdue.
Net 30 is the most common payment term on US business-to-business invoices. It means the full balance is due 30 calendar days after the invoice date. Net 15 and due on receipt are common for smaller or one-off jobs, while net 60 and net 90 usually appear when a large buyer sets the terms for its suppliers.
Net 30 means the invoice must be paid in full within 30 calendar days of the invoice date, with no discount for early payment. Calendar days include weekends and holidays. An invoice dated January 10 with net 30 terms is due February 9. Net 30 is effectively a short interest-free line of credit from the seller to the buyer.
Due upon receipt means the invoice is payable immediately, on the day it reaches the customer, with no credit period. There is no standard grace period, so most businesses interpret it as payment within a few business days. It is used for one-off work, repairs, and customers who have not established credit terms.
It means the buyer can take a 2% discount by paying within 10 days, and otherwise owes the full balance on day 30. On a $10,000 invoice, paying by day 10 costs $9,800. Declining the discount to keep the cash 20 extra days is expensive, working out to roughly 36% on an annualized basis.
From the invoice date, unless the invoice states otherwise. Terms marked ROG count from receipt of goods, and terms marked EOM count from the last day of the month the invoice was issued. Because buyers often assume the clock starts when the invoice arrives in AP, state the trigger date in your terms and conditions.
Cover five things: the payment deadline expressed as an actual date, which date the term counts from, the accepted payment methods and remittance details, the consequence of paying late, and how to raise a dispute. If you offer an early-payment discount, print the discount deadline as a date rather than leaving the customer to count days.
Only if the customer agreed to it before the work began and the rate is lawful in your state. Late fees on commercial invoices are a contract term, not an automatic entitlement, and US states cap the interest chargeable on overdue balances at different levels. A fee that appears for the first time on the invoice is easy for a customer to challenge.
Net 30 counts 30 calendar days from the invoice date. EOM counts from the end of the invoice month, so an EOM invoice dated March 3 is due March 31, and a net 30 EOM invoice dated March 3 is due April 30. Treating net 30 EOM as ordinary net 30 produces a due date that is roughly four weeks early.
Upload the PDF, scan, or photo to the extractor at the top of this page. The AI reads the payment term, the invoice date, and any stated due date along with the vendor, totals, and line items, then exports them to Excel, CSV, or JSON. That removes the retyping step where most wrong due dates and missed discount windows originate.
Every AP term defined, from accrual to three-way match.
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Pull every invoice field into structured data.
