Payment terms

Glossary

  • PIA: Payment in advance
  • Net 7, 10, 15, 30, 60, or 90: Payment expected within 7, 10, 15, 30, 60, or 90 days after the invoice date
  • EOM: End of month
  • 21 MFI: 21st of the month following invoice date
  • COD: Cash on delivery
  • CND: Cash next delivery
  • CBS: Cash before shipment
  • CIA: Cash in advance
  • CWO: Cash with order
  • 1MD, 2MD:Monthly credit payment of a full month (or two-month) supply
  • Stage payments: Set payments over a period of time, agreed upon by the client and seller
  • Forward dating: Invoicing for payment to be made after the customer receives the order
  • Accumulation discounts: Discounts on large orders
  • Partial payment discount: When a seller offers a partial discount due to low cash flow
  • Rebate: Refund sent to the buyer after they’ve made a purchase
  • Contra: Payment from the client, offset by the cost of supplies purchased