Net payment terms specify the period within which the full amount of an invoice is due, subject to the agreed starting point and conditions.
How it works in retail
For example, net 30 generally means payment is due 30 days after the stated reference date. That date and any discounts or penalties should be confirmed in the agreement.
A retail example
A supplier invoice specifies net 30 from the invoice date, allowing the buyer a stated period before payment is due.
What to keep in mind
Do not assume the clock starts on delivery or that a discount is included. Terms such as early-payment discounts and late charges require separate clarification.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.