Net 30 is a term used in an invoice to indicate the time at which a vendor wants to receive payment for the product or service provided. 2/10 Net 30 Payment Terms Example. The shortest form on a bill looks like this: "Payment terms: net 30". If you require faster payment, swap “net 30” for “net 15” or even “net 10. 2/10 Net 30. To incentivize faster payments net terms are combined with a discount. 2/30, net four months (assume 122 days) View Answer Tarentum Industries, Inc. What does the invoice term 2/10, Net 30 mean? The buyer can take a 30% discount for paying in 2 days. Doing so will help build business. An annual purchasing charge account ($79 annual fee). 2/10 Net 30. The great thing about Office Garner is that you can make a formal request for a credit increase after 3 paid-in-full net 30 invoices. But, depending on the industry you operate. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. What Does 2/10, Net 30 Mean? What is the definition of 2/10, net 30 credit terms? This is the cash discount terms for a credit transaction. Best Answer. Once the customer starts paying on time, the business may extend longer payment terms like net 30 or net 60. Force F2 = -90 N. This discount serves as an incentive for prompt payment. Use Clear Language: Replace "net 30" with "payment due within 30 days" for clarity. Assume a customer that gets net-30-day terms now has the option to get a 2% discount if they pay in ten days. For example, if the terms are Net 15, then the customer must pay within 15 days. On a yearly basis this would mean a cost of discount of 12. Example 2. answer the question what does 2 10th net 30 mean, which will help you get the most accurate answer. This invoice agreement is usually. What does 30 day nett terms mean? 30-day net terms means this is the amount of time a business has to pay an invoice. D. What is a 2/10 network 30 early payment discount and at does it make sense for your business to use one? Read unser full guide with examples and calculations. This means that customers are granted a payment period of 30 calendar days (not working days). What does 2 | 10, net 30 mean? This means 2% discount if paid within 10 days of invoice, otherwise the bill is due in 30 days. The buyer receives a 2% discount on the net invoice amount when paid within 10 days. You are wondering about the question what does 2 10th net 30 mean but currently there is no answer, so let kienthuctudonghoa. Net 30 on an invoice means that the buyer has 30 days from the invoice date to pay the net amount in full. Become a Study. This means that the customer can pay $833 instead of $850 if they settle the bill within 10 days of the invoice date. In this case, the invoice is due within 30 days after receiving it, but 30 days doesn’t always fall on the end of a month. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. 2/10 Net 60 means that the buyer receives a 2% discount if the order is made within 10 days otherwise the payment must be made in full within 60 days. Which simply means if the buyer pays the invoice within 10 days, they will receive a 2% discount. From an accounting manual for a university - with many definitions for various payment terms I found this: 2% 10 and 25th =. Compare Your Financing Options With Confidence. 2/10, net 30 days. E. number of days in the discount period b. “n/30” states that if the buyer does not pay the (full) invoice amount within the 10 days to qualify for the discount, then the net amount is due within 30 days after the sales invoice date. We would like to show you a description here but the site won’t allow us. It specifies when the vendor wants to be paid for the product or service they provided. Net 7 or 7 Days. So, the due date will be within 30 full days of the invoice date. Here are examples of net 30 payment terms combined with discounted rates for early payment. So the “2” represent the discount amount of 2%, and the “10” represents the due date. What if an invoice lists the terms 2/10 net 30? If an invoice lists the terms 2/10 net 30, it means that if the customer/ buyer makes the payment on the purchased product or services within the due date, they may enjoy a 2% discount on the purchase price. a. classification. This is the standard way to write out and abbreviate term details. 30 days payment terms are often referred to as net 30 on invoices. Therefore, they handle building insurance, property insurance, and real estate taxes on top of paying rent. 1, payment is due on or before Oct. The trade terms "2/15, net 30" indicate that:. This type of transaction is common in business, and it is. Net 30 terms are often combined with a cash discount for early settlement. Extend highlight invoice, fill out, and edit your documents using a simple and straightforward interface. These terms refer to the number of days in which a payment is due. The 2/10 net 30 trade credit is a popular agreement between suppliers and buyers. It means that your client owes a payment to you within 30 days of the transaction for goods or services. ∙ 10y ago. For example, if you invoice your client with a payment term of net 30 EOM on October 13th, the payment will be due on November 30th - 30 days after October 31st. So. Step 2: The figure on the next page displays the invoice timeline. *. You may also come across other related symbols, although these are less common: ≠ means not equal. "10" indicates the number of days (from the invoice date) within which. Net 30 days. The "1%/10" part of the payment terms means that if the bill is paid within 10 days of the invoice date, the customer will receive a. But net 30 is not the only term you’ll run into. This kind of discount terms will place on the issued invoice. M stands for ‘End of Month. Two percent of $4,275 is $85. Buying Inventory for $100 with conditions [2, 10, net 30] Inventory 100 Accounts Payable 100 Accounts Payable 100 Cash 98 Inventory 2. Example of a Trade Credit A 2/10 net 30 (also known as 2 10 net 30) means the balance will be discounted by 2% if the buyer makes a payment within the first ten days. Take a look at this example to determine how much the credit customer pays: Invoice full amount: $1,000. 2/10 Net 30 (2/10, n/30) means that the payment is still due in 30 days, but the customer will receive a 2% discount if the invoice is paid within 10 days. Accounts payables are . I. 50. Invoice that is sent on a regular basis. Of course, this also applies to other discounts, so a 2% discount on payments made within 10 days would read as. Common Payment Terms. For example, if the terms are Net 15, then the customer must pay within 15 days. What does net 3/10 30 mean? A net 3/10 30 or 3/10 net 30 is an early payment discount of 3% if your customer pays within the first 10 days of receiving the invoice. False; True or false: The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period. Answered By. Net 60—you guessed it—signifies payment is due 60 days. d. This can also be represented as Net 15, Net 60, etc. It’s a term you’ll typically see written on an invoice after you’ve received the product or service, but it can also pop up in contracts. While some companies may opt to pay these invoices well before the 30-day mark, many will not unless you offer incentives to do so. In this case, the number “2” represents the percentage of discount offered, while “10” signifies the number of days within which the payment must be made to. 41 percent: 2 %/ 98% [100% - 2 %] x 365) / 60. Walmart offers a Community Card that gives approved business organizations net 30 terms. only that payment in full is due 60 days after date of the invoice. Market maturity. The buyer receives a 2% discount on the net invoice amount when paid within 10 days. 15 MFI: Payment is due on the 15th of the month following the invoice date. 2/10, net 120 b. What if an invoice lists the terms 2/10 net 30? If an invoice lists the terms 2/10 net 30, it means that if the customer/ buyer makes the payment on. The vendor has to perform. Examples of early payment discount terms are 2/10 net 90 or 2/20 net 90. Other terms might be net 10 days, due upon receipt, net 60 days, etc. These terms refer to the number of days in which a payment is due. accuracy. Net monthly account. "10" indicates the number of days (from the invoice date) within which. e. Instead of a 2% discount, the vendor could. “Net 30” is a credit term used in business to signify that the full amount a client owes is payable within 30 days, including weekends and holidays, upon goods shipment or job completion. The terms which indicate when payment is due for sales made on account (or credit). 01 = $10) and make a payment of $990 within 10 days, or pay the entire $1000 within 30 days. If the terms are Net 30, then the customer has 30 days to pay and so on. 2/10 Net 30. ” What does 2 10 net 45 mean? 2/10 net 45 – A 2% discount is on offer for buyers who pay within 10 days of the invoice date, otherwise,. Which simply means if the buyer pays the invoice within 10 days, they will receive a 2% discount. FNet = 100 – 90. Invoice date: October 1. It could mean 30 days after the sale, 30 days after delivery, or 30 days after the invoice. What is a 2/10 net 30 quick payment discount and when takes it make sense for to business to application to? In other words, you can pay within 10 days and deduct 1% from the invoice amount or pay the full amount in 30 days. Net 30 refers to the amount owed in full, less any discounts and deductions. The key to Net 30 accounts is to pay the invoice on time. 1/15 Net 30. The code abbreviate term details and indicate: Discount percentage if paid in cash / number of days cash discount is available; Net amount of payment due / number of total days in the. Market growth. The vendor has to perform services first or. 2/10 Net 30/60/90 or 2%10 Net 30/60/90. Payment is due at the end of the second month following the month of the invoice. Multiple Choice. You include payment terms on the invoice. Therefore, Net 30 simply means the vendor wants to get paid within 30 calendar days after the invoice has been received. The vendor may combine these credit terms with early payment discount terms like 2/10 net 30, which offers a 2% discount for invoice payment within 10 days or payment of the full invoice balance due in 30 days. If an invoice payment term is “5% 10 net 30,” this means the client can receive a 5% discount if their invoice is paid. Suella Braverman calls for annual cap on net migration, saying new figures ‘slap in face to British public’ – as it happened 1d ago Hunt’s tax cuts mean austerity ‘more painful’ than. K. For example, if a business sells $10,000 worth of products and issues an invoice with Net 30 payment terms, the buyer has 30. Also defines as total current assets, List of typical current assets, _____ are measured in terms of liquidity and more. This simple concept connects to other areas of business operations, including customer communication. A term such as “Net 30” requires the client or customer to make a payment within 30 days. Betting Odds Explained. Invoice date: September 1. highest profit (when prices are rising) FIFO. For instance, Net 30 (or N/30) means that a buyer must settle their account within 30 days of the date listed on. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. The quick formula is 100% . Jan. g. For example, 2 + 2 ≠ 5 - 2. You may find that clients prefer. 01:52. In addition, what does N 10 imply in terms of accounting? The n represents the net, and the first ten represents a number of days. A firm has just received an invoice for $1,000 with the following terms: 3/10, net 30. There’s more to the term "Net 30" than telling clients that their payment is due in 30. The new payment terms would then be 2% 30, net 90. This early payment discount formula incentivizes buyers to settle their invoices promptly. The 30 day period starts on the date of the invoice. Copy. Net Profit Margin = Net Profit/Revenue = $30/$100 = 30%. Study with Quizlet and memorize flashcards containing terms like FOB shipping- recognize revenue when goods _____, FOB stands for what?, FOB destination- recognize revenue when goods _____ and more. has a revolving credit agreement with its bank under which the company can borrow up to $10 million at an interest rate of 1. The invoice indicates the invoice date and, preferably, the payment due date. Net 30 is just one of many payment terms used by small businesses. Net 30 payment terms on an invoice means the customer has 30 days to pay the full balance of the invoice. Thus, terms of "net 20" mean that full payment is due in 20 days. Indication "2/10, n/30" (or "2/10 net 30") on an invoice represents a cash (sales) discount provided by the seller to the buyer for prompt payment. The word net in the terms means the invoice amount minus the amount allowed for having returned goods and/or allowances that were approved by the seller. Subtotal invoice amount $ 2,500. Proposition 3 will prohibit an individual wealth or net worth tax — in other words,. This means that the customer can take an early payment discount of 2%. Typically expressed as a percentage, net profit margins show how much of each dollar collected by a. Examples of early payment discount terms are 2/10 net 90 or 2/20 net 90. cooperative advertising allowance. What does net 2/10 30 mean? Like the net 3/10 30, net 2/10 30 is an early. 2/10 represents a 2 percent discount when payment is made to the supplier within 10 days of the credit sale. For instance, net 30 means the customer has 30 days to settle their account, net 60 allows for 60 days, etc. In payment term what does it mean on this term? 2%/10, net 60. For example, you can bet the Dallas Cowboys as a -7 point favorite to beat the Green Bay Packers or the Packers as a +7 point underdog. Net sales are the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. FNet = F1 + F2. "Credit terms" of 2/10, net 30 mean that Sure Foot is offering customers a: A. That’s where 2/10 net 30 comes into play. In other words, you can pay within 10 days and deduct 1% from the invoice amount or pay the full amount in 30 days. What does “2/10 net 30” mean? Net 30 terms are often coupled with a discount for early payment to encourage the client to pay more quickly. Learn why this is important for your business cash flow. ($900 minus $18) $882: 2/10, n/30: If paid in 30 days of the invoice date, the net amount. Therefore, the net force is 10 N. Or request 2/10 net 60 payment terms to extend the payment due date from 30 days to 60 days, with an optional 2% prompt payment discount if you pay the invoice within 10 days. Usually retailers must pay for the inventory in cash within the first 10 days after purchase to receive the discount. 3. See More. This discounted payment option means that if the invoice is paid within 15 days, rather than 10, a 1% discount is applied. Net 30 (sometimes written as net-30) refers to the number of days a client has to pay a bill in full after a certain action has been completed. 2/10 Net 30. Q. c. A. Payment is due on the 15th of the month following the invoice date. Highest rating: 4. If they wait to pay their invoice on days 11 through 30, they’ll pay the full amount. Editing documents is now an integral part of many working processes in various professional areas, which explains why accessibility and efficiency are crucial for editing instruments. A standard term rate that applies across most industries is 2/10 N/30—often called 2/10 net/30. What Does 2/10 Net 30 Mean? 2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. Simply put, net 30 on an invoice means payment is due thirty days after the date. 01:55What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. If paid within 10 days, then: $10,000 X 98% = $9,800 due with in 10 days. Net 30 is a type of payment agreement where the customer agrees to pay the invoice within 30 days of receipt. The number after the net indicates the. In what context does the phrase 3/10 n 30 make sense? Discounts for taking more than one step Using the example of 3/10, 1/20, net 30, it means that a 3 percent discount is available for payment within 10 days, a 1 percent discount is available for payment within 20 days, and the whole invoice amount must be paid within 30 days of. The term 2/10, n/30 is a typical credit term and means the following: “2” shows the discount percentage offered by the seller. Put simply, the term net zero applies to a situation where global greenhouse gas emissions from human activity are in balance with emissions reductions. Your firm is not taking discounts, but is paying after 22 days instead of Day 30. Net 15 is an invoice payment period that requires full payment to be made within 15 days. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Yet that doesn’t really tell you how net-30 might help you to build commercial credit or why it can be a great choice of credit for new and old businesses alike. Important Net 30 terms ‘Net 30 EOM’ Meaning. Businesses use this credit term to encourage their customers to pay earlier by providing discounts as an incentive. The table below shows some of the more common credit terms, explains what they mean, and also notes the effective interest rate being offered to customers with each one. The notation “2% 10, net 30” indicates that the buyer can only take a 2% discount if payment is received in full within 10 days of invoice date and that full payment is expected within 30 days. Net 30 is a term included in the payment terms on an invoice. Another term for extending credit to customers is trade credit. Finance questions and answers. Net Terms "Net" means that the full amount is due for payment. So, for example, Net 15 means that the deadline is 15 days after the invoice is sent, and so on. 2/10 net 30 Meaning. A supplier offers credit terms of 2/10, net 30 . If they reduce therefore, the net sales figure rises. Otherwise, the amount is due in full within 30 days. The credit terms 2/10, n/30 mean that the customer may take a $2. , “net 10 days”) are forms of trade credit which specify that the net amount (the total outstanding on the invoice) is expected to be paid in full by the buyer within 10, 15, 30 or 60 days of the date when the goods are dispatched. Payment terms offered by a vendor are shown on a customer’s purchase order (PO) and invoice. Net 7, 21, 30, 60, 90: This means that payment is expected within 7, 21, 30, 60, or 90 days from the invoice date. This guide examines what is a net 30 account for a business, the pros and cons of net 30 accounts, how to open a net 30 account and how it all fits your business’s needs. a. For example, 3/10 net 30 payment terms mean the buyer will receive a 3% discount if they pay within a 10-day period. What does 2/10 net 30 mean? An invoice with 2/10 Net 30 payment terms is due within 30 days as with all invoices with net 30 terms, but with the note that if paid off within 10. Example. But since your firm is neither taking discounts nor paying on. This discount is intended to encourage customers to pay more quickly. On the next line, click the drop-down arrow under Product/Service. For instance, if you set Net 30 as your payment term, then the customer is expected to pay for the products they purchased within 30 days from the date of delivery of the product. Compare this 2/10 net 30 annualized interest rate to your bank’s annual interest rate for financing, which is generally much less. ($500/$490) – 1 = 2. 56%. 01:48. What does 2 percent 2nd 10th net 30 payment terms mean? stupud. 30 days End of Month. This credit term of [ 2/10,n/30 O. For $40/mo, they’ll add tradeline reporting of your membership fee, while the $50/mo plan will let. To complete the example, we multiply 0. 980 12/8 (within the discount period) Accounts Payable 980 Cash 980 12/15 (without the discount period) Accounts Payable 980 Purchase Discount Lost 20 Cash. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. Study with Quizlet and memorize flashcards containing terms like What goes into the cost of inventory, What are the two methods of tracking inventory, What are the two journal entries when a company sells inventory and more. ”. What does 2/10 net 30 mean in accounting? 2/10 net 30 Meaning. net 10 eom meaning: abbreviation for net 10 days end of month: written on an invoice to show it must be paid within ten…. Net 15 payment terms: This means an invoice is due in 15 days Net 30 payment terms: This means an invoice is due in 30 days Net 60 payment terms: This means an invoice is due in 60 days Net 90 payment terms: This means an invoice is due in 90 days. Mean Calculator is a free online tool for measuring the mean of a data set. What does 2/10 net 30 mean? Net 30 payment terms may come with a fraction like the 2/10 above. What does terms net 30 mean? Net 30. Adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days. The 2/10 Net 30 is a popular method of extending trade credits to buyers. Instead of a 2% discount, the vendor could. What is Net 25th in payment Terms mean? It means you pay on the 25th of each month. An invoice for 800 with terms 1/10 net 30 is a business transaction that requires payment of 800 with a 1/10 discount if the payment is made within 10 days of the invoice date. C. After those 10 days pass, the full invoice amount is due within 30 days without the 2% discount according to the terms for 2/0 net 30. Terms in QuickBooks Desktop shows the number of days by which payment is due and sometimes include a discount for early payment. What does 2/10 net 30, 5/10 net 30, etc. In the business world, net days is a fancy term for the number of days you have to make a payment. False; The terms 2/10, n/30 mean that a 2 percent discount is allowed on payments made over 10 but before 30 days after the invoice date. This means that if the buyer is able to fulfill the invoice amount of the. It’s a term you’ll typically see written on an invoice after you’ve received the product or service, but it can also pop up in contracts. What does Net 30 mean? On an invoice, Net 30 means payment for an invoice is due thirty (30) days after the invoice date. The term 2/10, net 30 means customers paying within ______ percent discount. This means your customer receives a 5% discount if they pay their invoice within 10 calendar days. View this answer. The use of a chart of accounts and proper codes for recording revenue transactions should provide adequate assurance for the ______ assertion. The cash discount term "2/10, net 30" means that: O the invoice is dated February 10 and must be paid by February 30, the buyer will, in effect, be borrowing at a 36 percent annual interest rate if he takes 30 days to pay the Invoice the buyer must make a 2 percent down payment--with the balance due in 10 to 30 days. Due upon receipt: The customer is expected to pay the full amount immediately upon. Otherwise, the total amount is. The formula reads =SUM (D42:D43). Copy. When the credit terms list EOM, usually the debtor has until the end of the month in which it is due to pay the bill. ”. A supplier offers a firm a 4/10, net 30 discount for early payment on a $1500 bill. 2/10 net 30 means that buyers are eligible to get a 2% discount on trade credit if the amount due is paid within 10 days. a. As an example, if the invoice amount is $500, calculate the 2/10 net 30 annualized interest rate: $500 x (100% – 2%) = $500 x 98% = $490. Net Cost Method 12/ 1 Inventory . Enter the Vendor name, in the Item details section add your item and amount. Net 30 and Net 90 are the most common payment terms. Answer: a) 2/10 net 30 means that buyers are eligible to get a 2% discount on trade credit if the amount due is paid within 10 days. This discount is intended to encourage customers to pay more quickly. View the full answer. 2/10 net 30 means that if the amount due is paid within 10. Since the payment was made within 8 days you can pay $450 - $9 = $441. The phrase “net 30 payment terms” means that your clients have up to 30 days to settle outstanding invoices. 98 x 100= 980 Accounts Payable. Payment in advance. In the business world, net days is a fancy term for the number of days you have to make a payment. Static Discounts. Everything is calculated starting from the date of the invoice. Net 30 means that the full payment is due within 30 days of the invoice issue date. Credit terms of 1/10, n/30 mean that: a. 5%. That tool is net 30 and net 60 vendor accounts. a 2 percent discount off the face value. Invoice due date: 30 days. The invoice date is usually the shipping date. 98 x 100= 980 Accounts Payable. This sort of basic activity does not have to require extra training or running through guides to understand it. Net 30 means that you’re offering your customers at least 30 days to pay their invoice or the total order amount in full. The 2/10 net 30 trade credit is a popular agreement between suppliers and buyers. 1/10 net 30, 2/10 net 30, and 3/10 net 30 are the three most common incentives attached to net 30 payment terms. The Difference Between Net 15, Net 30, and Net 60. Net 30 refers to a payment term where the payment for the goods or services is due in full 30 days after the transaction has completed. "Net 10" means that payment is due 10 days from the date of the invoice. The 2/10 Net 30 is a popular method of extending trade credits to buyers. Net 30 is a term used in an invoice to indicate the time at which a vendor wants to receive payment for the product or service provided. The seller offers no prompt payment discount. It is most commonly used to show the result of a calculation, for example 2 + 2 = 4, or in equations, such as 2 + 3 = 10 − 5. Usually when the goods are delivered, a. 04% for the 20 days between day 10 and day 30. Invoices contain the date of sale, goods or services purchased, payment terms and conditions, etc. answer the question what does 1 10 net 30 mean, which will help you get the most accurate answer. The last term is n/30 or net 30, which means that payment is due within 30 days. Net 30 EOM (End of the month) means that the client has to pay before the end of the next month. The term 2/10, n/30 is a typical credit term and means the following: "2" shows the discount percentage offered by the seller. 2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. Net 60: The customer has 60 days to pay the invoice. Net 60 and 10 are also acceptable. 2/10 net 30: 2% discount when paid within 10 days; later payment: full amount; 4/14 net 60: 4% discount. Expands your customer base. Merchandising companies. ”. In accounting, what does N 30 mean? A common credit term is 2/10, n/30, which signifies the following: The seller’s discount % is indicated by the number “2. 7% for terms that allow a 2% discount if paid within 10 days, or full payment in 30 days. COD: Stands for Cash on Delivery, and it means that payment must be made on delivery of goods. The customer suggested 2% 30 day terms. So, if the payment term is net 30 EOM, it means that the customer has 30 days to pay back, after the end of the month when the invoice was sent. EOM stands for the end of the month. For example, giving a 2% discount to clients who settle their accounts within 10 days is quite common. You put in payment terms of 30 days for that client, or set it on an invoice-by-invoice basis. 2/10, net 30. On an invoice, net 10 means that full payment is due in 10 days after the invoice date, at the very latest. 2/10 Net 30 Amount = Total Receivables – Total Discount. If the customer doesn’t pay within 10 days, then the invoice is due in. How to Calculate How do you calculate 2/10 net 30? The math is quite simple with the first number ( 2) being the percentage discount of the invoice amount, while the second. In credit terms of 1/10, n/30, the "1" represents the a. Consider Your Industry: Industry norms and client relationships can affect your. The “3” is the percent discount, and the “10” is the number of days the discount applies for. 98 = $9,800. For example – An invoice for freelancing work charged $1200 if is termed 2/10 net 30, it means the payment for the service provided should be done within 30 days. So, if the buyer was offered. For instance, many businesses offer net 30 terms that have a 2% discount included if the customer pays within 10 days (2/10). Technically, Net 30 is a short-term credit extended by the supplier to the client. Net Cost Method 12/ 1 Inventory . COD: This. Technically, the seller is lending the buyer money. You may find that clients prefer longer. The vendor may combine these credit terms with early payment discount terms like 2/10 net 30, which offers a 2% discount for invoice payment within 10 days or payment of the full invoice balance due in 30 days. On a yearly basis this would mean a cost of discount of 12. It means once you have earned at least $100, you will be paid on a NET15 basis, meaning 15 days after the end of that month. For example, an invoice with the terms 2/10 – net 30 means a net 30-day invoice with a 2% discount if paid in 10 days (instead of 30). Net 30 payment terms simply mean that the buyer has 30 days to pay the invoice in full. Usually, Net 30 on an invoice is used when a job is complete, e.