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An "open account" payment term means that goods are shipped and delivered before payment is due, allowing the buyer to pay at a later date. In this case, a term of "50 days" indicates that the buyer has 50 days from the invoice date to make the payment. This arrangement is typically used in international trade and is favorable for buyers, as it provides them with time to sell the goods before settling the payment. However, it carries a higher risk for sellers since they extend credit without immediate payment.

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2mo ago

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Related Questions

What is meant by payment term OA 30 days?

open account 30 days..


What is meant by payment term OA 60 days?

OA = open account


What is meant by payment term OA 90 days?

Payment term OA 90 days refers to "open account" payment terms where the buyer is allowed to pay the seller within 90 days after the invoice date. This arrangement typically indicates a trust-based relationship, as the seller ships goods or provides services without requiring immediate payment. It is common in business-to-business transactions, allowing buyers to manage their cash flow effectively while still receiving the products or services needed.


What does payment term wire 30 days mean?

"Wire 30 days" refers to a payment term where a payment is made via wire transfer within 30 days of an invoice date or service completion. This means the recipient can expect to receive the funds in their bank account within that timeframe, typically after the invoice is issued. It's a common practice in business transactions to ensure timely payment for goods or services rendered.


What is the term for a bank account that permits direct payment to a third-party?

Transactions account


What does 30 days nett monthly mean?

It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised. It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised.


What does the payment term 30 days mf mean?

The payment term "30 days mf" typically stands for "30 days month-end." This means that the payment is due 30 days after the end of the month in which the invoice was issued. For example, if an invoice is dated March 15, the payment would be due by April 30. This term is commonly used in business transactions to provide a clear timeline for payment.


What does 31 days nett payment mean?

It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised.


What does payment term CF 30 days mean?

Credit For 30 days


What account receivable payment term is not standard business?

cash on demand...


Why people prefer only DA Payment terms?

Isn't it the bank is fully aware of the order is under certain # days of D/A so you will have the first priority to collect the payment before the account holder. This is how the payment term document against acceptance stands.


What payment term is better for supplier TT60days or OA 60days or 60day LC?

The best payment term depends on your business relationship and cash flow needs. TT (Telegraphic Transfer) 60 days may provide quicker access to funds for suppliers but requires upfront payment. OA (Open Account) 60 days allows for payment after goods are received, which can be advantageous for cash flow but carries more risk for suppliers. A 60-day LC (Letter of Credit) offers security for both parties, ensuring payment upon meeting agreed terms, making it a balanced option if both parties are comfortable with it.