Indication "12/10, n/30" (or "12/10 net
30") on an account represents a cash (sales) discount provided by the
seller to the buyer for swift payment.
The term 12/10, n/30 is a classic credit term
and means the following:
"12"
shows the discount percentage offered by the seller.
"10"
indicates the number of days (from the invoice date) within which the
buyer should pay the invoice in order to obtain the discount.
"n/30"
states that if the buyer does not pay the (full) invoice amount within the
10 days to meet the requirements for the discount, then the net amount is
due within 30 days after the sales invoice date.
The discount date begins at August 9 and the last day would
be August 19.
