End of month eom dating
Mary orders 200 copies of a new book for her bookstore. If Mary makes her payment on October 19, how much will she pay?She receives a $4000 invoice dated September 9 for the books only, no tax or shipping. The final type of dating used on invoices is known as end of month dating (EOM).
Lets try a ROG question that includes calculating the amount of money the buyer would send to the seller.This is the case if shipping will take a long time or the goods are ordered ahead for the next season.For example, a gift store will place its order for Christmas items in the summer.Start by calculating the end of the discount periods.This means a 2% cash discount is given if the invoice is paid in the first 10 days.This type of dating makes the discount period and the credit period relate to the end of the month.
Examine an invoice and learn how to calculate a cash discount using the EOM (end of month) dating method with this Tab Tutor program.
It does not begin with the date the seller puts on the invoice.
ROG dating is often used when the buyer will not receive the goods immediately after ordering.
Credit terms are an important feature of discounts.
Credit terms refers to the timeframe used to calculate the due dates and the time period over which a discount may be offered.
You may know that day planners sold in business supply stores often include the numerical day of the year in addition to the days date.