1%/10 net 30 is a way of providing cash discounts on purchases.It means that if the bill is paid within 10 days, there is a 1% discount. For example, if "00 1/10 net 30" is written on a bill, the buyer can take a 1% discount (00 x .01 = ) and make a payment of 0 within 10 days or pay the entire 00 within 30 days.This figure will indicate the total percentage discount on the invoice prior to shipping or taxes that may be discounted upon early payment.The second number is the always the number of days of the discount period.This is particularly important for cash-strapped businesses or companies with no revolving lines of credit.Companies with higher profit margins are more likely to offer cash discounts.Although the numbers are always interchangeable across vendors, the standard structure for offering a payment discount is the same.
If you sell a product, your company either buys the supplies to manufacture it or purchases the item at a wholesale price form vendors.
By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
Excel stores times as decimal fractions because time is considered a portion of a day.
When you operate a business, your cash flow is an important indicator of your company's financial health.
Ideally, you don't have to pay your vendors' invoices until your customers have bought the products.