Payment terms play a critical role in determining invoice due dates, discounts, and overall payment timing. Occasionally, some nuance can be introduced between when you receive a bill and it’s actual due date. This article provides clear definitions of commonly used payment terms and explains how MakersHub identifies, interprets, and applies them. It also outlines how users can review extracted terms, make adjustments when needed, and train the system to recognize vendor-specific terms to improve accuracy on future bills.
Payment Terms Details
Terms Defined
Net 30 - payment is due in 30 days.
Net 30th - payment is due on the 30th day of the month.
Prox 30 - payment is due by the 30th of the next month.
Prox is short for the Latin "proximo mense," meaning "in the next month," which sets the due date to a specific day in the month following the invoice date.
2% 10, Net 30 - 2% discount if paid within first 10 days, payment is due in 30 days.
Data Extraction Training
View the extracted terms under Bill Details. Terms can quickly be trained ad-hoc in the header detail - define the logic and click the double checkmarks to execute. .png)
Under Data Extraction Utility > Data Extraction Training, you can view the terms training for the specified vendor.
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Payment Terms Configuration
Configure this vendor’s Payment Terms details to reflect the intended logic. See examples below.
Example 1: 2% 10, Net 30
Reading the terms configuration offers an interpretation of the logic.
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Example 2: 2% 10th, Net 25th
Define under what conditions the bill should be due in the following month to facilitate prox terms.
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For additional support in configuring vendor-specific terms, please reach out to support@makershub.ai.