Discount Period

The time period in which a cash discount is available and a reduced payment can be made by the buyer, taking advantage of a reduction in selling price. The equation for setting up the terms is: n/10 = EOM. The EOM means “end of month” and most invoices are due for payment in 30 days, thus making the EOM 30 days. The “n” in this case means the discount percent if the payment is made within 10 days.

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