Okuzeka
Accounting & Tax vocabulary · Invoices & Payments

Payment terms

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, payment terms means: The conditions agreed between buyer and seller about when and how an invoice must be paid, such as 'net 30' or a discount for early payment.

In Turkish: ödeme koşulları, vade, ödeme vadesi

How it is used

Shown on invoices and contracts. Net 30 means the full amount is due 30 days after the invoice date; 2/10 net 30 adds a 2 percent discount for payment within 10 days. Companies negotiate and extend payment terms.

Example sentences

  1. Our standard payment terms are 60 days from the invoice date.

  2. The supplier agreed to extend our payment terms to 90 days.

Common collocations

  • net 30
  • agree payment terms
  • extend payment terms
  • early payment discount
  • invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.
  • due dateThe date by which a payment, such as an invoice, loan instalment or tax, must be made, or by which a return or report must be submitted.
  • accounts payableMoney a company owes to its suppliers for goods or services bought on credit, and also the team that processes and pays those supplier invoices.
  • accounts receivableMoney that customers owe a company for goods or services it has already delivered on credit, and also the team that collects those payments.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Invoices & Payments

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This page explains English vocabulary for learners. It is not financial advice.