Invoice Date = January 17
• First terms:
8/10 and n/40
This means the final discount can be availed "10" days from Invoice Date (Jan17)
So, it will be:
Jan 17 + 10 days = January 27
Final Discount Date = Jan 27
The net payment date will be "n/40", which is 40 days from invoice date, thus
Net payment date will be:
Jan 17 - Jan 31 = 14 days
Feb 1 - Feb 26 = 26 days
------------------------------------
40 days
Payment Date = Feb 26
• Second terms:
6/20 and n/40
This means the final discount can be availed "20" days from Invoice Date (Jan17)
So, it will be:
Jan 17 + 20 days = Feb 6
Final Discount Date = Feb 6
The net payment date will be "n/40", which is 40 days from invoice date, thus, same as before,
Payment Date = Feb 26
• Third terms:
4/30 and n/40
This means the final discount can be availed "30" days from Invoice Date (Jan17)
So, it will be:
Jan 17 + 20 days = Feb 16
Final Discount Date = Feb 16
The net payment date will be "n/40", which is 40 days from invoice date, thus, same as before,
Payment Date = Feb 26
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