Eom or end of month dating is the same as
Some say that you'll lost 60% of your recievables after day 90.The terms offered by the seller usually depend on the trade custom.
LIFO vs FIFO, accounting vs economic income, and many other matters make 2/10 n 30 accounting somewhat complicated.These terms may also be referred to in a variety of terms: 2/10 n 45, 2/10 n 60, 2/10 days net 30, 2 percent 10 net 30 days.The 2/10 net 30 discount makes no statement on the payment of bills beyond 30 days.Businesses love to offer 2/10 net 30 for 2 reasons: it makes customers happy while speeding up cash cycles.Variations on this method include 2/10 net 40, 2/10 net 45, 2/10 net 60, 2/10 n 30 EOM (end of month), and more.As you can see, it is to the buyer's advantage to have this term, as it can have an effective range of 60 to 90 days to pay for the purchase.
An invoice dated 4/21/10 with Net 10 EOM 60 Days will be due within 10 days of the end of month (5/10/10) with an additional 60 days after that.
Let's say you have a 30 day EOM account with Goodyear tyres.
You purchase goods from them in the month of January.
Net 30 = 100% of the balance paid in 30 days, Net 60 is 50% paid by 30 days and the remaining 50% by day 60, and so on.
The ability to collect from a customer declines substantially after 90 days.
It is a payment term, and usually means that the total amount will be paid 60 days after the end of the month in which the invoice is dated.