Hi!!
Thank you for asking to Google Answers!!
The definition for this type of payment method is simple.
"Net 30 Days:
Payment of entire invoice amount is required within 30 days from
invoice date or receipt of goods, whichever is later."
From "Directives and Procedures - University Controller's Office -
Finance and Accounting - UF: Definitions Of Frequently Used Purchasing
Terms - Payment Terms
":
http://fa.ufl.edu/uco/handbook/handbook.asp?doc=1.4.12.3.2
Note that all terms of sale should be clearly specified. For example,
"net 30 days" should be specified as "net 30 days from acceptance" or
"net 30 days from date of bill" or "net 30 days from date of shipment"
or "net 30 days from date of invoice for services", etc.; this is to
avoid confusion and delay of payment.
Example:
Normal terms are Net 30 Days from date of bill. On a bill for
merchandise shipped September 15, a bill is dated "as of November 15"
making payment due December 15.
Another example (this one from real life):
"Standard payment terms are net 30 days - all payments are due 30 days
from the date of invoice. You will be invoiced when the last item on
your order is shipped."
From Branders.comīs "Terms and Conditions" page:
http://www.branders.com/text/service/credit.jsp
If you accept a Net 30 Days settlement this means that you must pay
the net due within 30 days of the receipt of goods or receipt of the
invoice, according to the settlement. After that date, if the payment
is not completed, an interest charge of X% per month may be added to
your acount, possibly plus other services charges.
NOTE: the amount X of interest charge must be specified in the
agreement, nowadays it is usually about 1.5% per month.
Example:
"BAS Terms of Sale":
"Payment Terms: Standard terms for BASi clients with established
credit are payment in 30 days from date of shipment of goods or date
of invoice for services (Net 30 Days) ... An interest charge of 1.5%
per month may be added to all past due accounts..."
http://www.bioanalytical.com/terms.html
Sometimes some incentives for "in term" payments can be added to the
agreement, see the following example:
"AIA Wisconsin | General Conditions & Contract - Account Terms":
"Net 30 days. 1.5% service charge per month after 30 days of invoice
date (18% per annum)...
...Recognized advertising agencies will receive a 15% discount only
upon receipt of payment within 30 days of invoice. After 30 days,
agency will be billed in full plus the accumulated service charge..."
http://www.aiaw.org/about/wamcontract.shtml#13
As a last reference see the following page, "How to reduce your
Accounts Receivable Aging" by Wayne Spivak from Networking Newspaper
for Women Volume 2, No. 2 March 1993:
http://guide.sbanetweb.com/press/collection.html
-Search strategy-
at Google.com I used the following keywords:
"NET 30 DAYS" payment
"NET 30 DAYS" glossary payment
I hope that this helps you to understand this concept. Feel free to
request for a clarification if you need more asistance regarding this
question.
Best regards,
livioflores=ga |
Clarification of Answer by
livioflores-ga
on
11 Oct 2005 20:43 PDT
Hi again!!
What I found for you are mostly credit application forms, regarding
them you must note that:
"The credit application should also be tailored such that it becomes
an agreement with respect to the credit terms upon approval. Here is
your opportunity to define all relevant terms of the credit (i.e. net
30 days, late charge of 1.5% per month on unpaid balance over 30 days,
etc.). Since, under Pennsylvania law, attorney's fees and costs are
not collectable absent an agreement between the parties, consider
adding language to the credit application providing the customer will
pay fees and costs upon collection. Furthermore, you may want to
consider language creating a personal guaranty by the principal or
principals for credit extended to a corporate account."
From "Credit Applications and Credit Sales-Part I" at FindLaw.com:
http://library.findlaw.com/1999/Nov/1/128032.html
Here are the links to the documents, read the Terms and Condition sections:
"Confidential Credit Application - Terms: Net 30 Days" - Global Shipping Co.:
http://www.globalshippingcompany.com/forms/GSC_Confidential_Credit_Application.pdf
"Credit Application and Sales Agreement: Net 30 Days" - Down to Earth
Distributors, Inc.:
http://www.down-to-earth.com/pdf_downloads/creditapp_salesagrmnt_30day.pdf
"Skinner Nurseries ? Customer Information & Agreement Form":
See Section C: Credit Authorization & Personal Guarantee.
http://www.skinnernurseries.com/CIA%20Form%20SMC.pdf
"WEBCOM LIMITED CREDIT APPLICATION/AGREEMENT FORM":
http://www.webcomlink.com/webcom/cred_app.pdf
"Application for Credit Account" - Inkjet Art Solutions:
http://www.inkjetart.com/images/credit_app.pdf
"Credit Application and Agreement" - Forward Air, Inc.:
http://www.forwardair.com/forms/pdf/creditApp2.pdf
You can also find useful the following terms and conditions pages:
"Terms and Conditions of Sale" - Universal Instruments Corporation:
http://www.uic.com/wcms/WCMS2.nsf/index/Parts_Store_2.html
DTC:
http://www.dtcgrip.com/docs/DTC%20Rental%20Terms.pdf
I hope this satisfy your needs.
Best regards,
livioflores-ga
|
