Definition
End of month (EOM) terms set the payment deadline relative to the end of the month in which the invoice was issued rather than the invoice date itself. Net 30 EOM means payment is due 30 days after the last day of the invoice month, so every invoice from one month shares the same due date.
Also called: EOM, Net 30 EOM, 30 days EOM
End of month terms in practice
EOM terms are convenient for clients who run a single monthly payment batch. For the seller they lengthen the effective payment window, especially for invoices issued early in the month.
Example
An invoice dated March 5 with Net 30 EOM terms is due April 30, 56 days later. An invoice dated March 28 with the same terms is also due April 30.
Frequently Asked Questions
Is Net 30 EOM the same as Net 30?
No. Net 30 counts from the invoice date. Net 30 EOM counts from the end of the invoice month, which can add up to 30 extra days to the payment window.