Terms of Payment with Date Limit and Cash Discount: Example 

You have agreed the following for invoices issued by the 15th of a month.

  1. Invoices that are paid by 31st of the same month receive 3 percent cash discount.
  2. Invoices that are paid after the 31st of the same month, but before the 15th of the following month, receive 2 percent cash discount.
  3. By the 31st of the following month, the invoices are due net. The baseline date for payment is the document date:

You have agreed the following for invoices issued after the 15th of a month but by the last day of the month:

  1. Invoices that are paid by 15th of the following month receive 3 percent cash discount.
  2. Invoices that are paid after the 15th of the following month, but before the 31st of the following month, receive 2 percent cash discount.
  3. Invoices that are paid by the 15th of the month following the next month receive no cash discount. The baseline date for payment is the document date:

You therefore have to define the terms of payment twice: Once with a day limit of 15 and once with a day limit of 31.