2 min read
Definition
End-of-month terms (EOM) set the payment due date relative to the end of the invoice month rather than the invoice date — for example '30 days EOM' means payment is due 30 days after the month-end in which the invoice fell. It simplifies a customer's payment runs.
In plain terms
An invoice dated 3 March on 30-day EOM terms is due 30 days after 31 March. This can quietly stretch your effective debtor days compared with net terms from the invoice date, so it is worth understanding what you have agreed.
Why it matters
Knowing exactly how your terms are structured keeps your cash-flow forecast accurate. See net 30.
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