Glossary · Payment terms
End of month (EOM) terms
Also called Net EOM, Net 30 EOM
End-of-month (EOM) terms count the payment period from the end of the month the invoice is dated, not from the invoice date itself.
With EOM terms, the clock starts at the end of the invoice’s month. “Net 30 EOM” means payment is due 30 days after the last day of that month; “Net EOM” on its own usually means payment by the end of the month.
Buyers like EOM terms because they line up with a monthly payment run. For the supplier they stretch the real credit period: an invoice dated on the 1st under net 30 EOM is not due for about two months, while one dated on the 30th is due in about one.
Because EOM wording is read in different ways, print the actual due date on every invoice. It removes the argument before it starts.
Example
An invoice dated 10 March on net 30 EOM is due 30 days after 31 March: on 30 April. The same invoice on plain net 30 would be due on 9 April.