How Do You Calculate N10 EOM Payment Terms?
N/10 EOM is a type of payment term you will see on an invoice. The n stands for net and the first 10 is a number of days. N/10 means the payment on the invoice is due in 10 days. EOM stands for end of the month. So when you put together n/10 EOM, it means you have to pay the invoice in full 10 days after the end of the month. Determine if there is any discount attached to the term. If there is a discount attached, before the n/10 EOM there will be a number then a slash and another number. For example, the terms on an invoice read 2/10, n/10 EOM. The first number is a percentage off the invoice. The second number is the amount of days the company needs to pay the invoice to get the discount. Determine the discount, if any. In our example, if the invoice is for $100,000, then multiply $100,000 by 2 percent, which equals a $2,000 discount if the company pays the invoice in ten days. Subtract the discount from the total invoice. In our example, $100,000 minus $2,000 equals $98,000. Determi
