Proposals · Glossary
What are EOM payment terms?
EOM means end of month. Under EOM payment terms the credit period starts at the end of the month in which the invoice is dated, not on the invoice date itself. So 30 days EOM on an invoice dated 3 June is due 30 July, while net 30 on the same invoice is due 3 July.
EOM terms are common in Australian trade accounts and suppliers often accept them without working out what they cost. The answer depends on the day of the month the invoice is dated, and it can be almost a month of extra credit.
Indunil Asanka · Co-founder
4 min read · Published
| Invoice date | Net 30 | 30 days EOM | 7 days EOM |
|---|---|---|---|
| 3 June | 3 July (30 days of credit) | 30 July (57 days) | 7 July (34 days) |
| 15 June | 15 July (30 days) | 30 July (45 days) | 7 July (22 days) |
| 30 June | 30 July (30 days) | 30 July (30 days) | 7 July (7 days) |
How EOM terms are counted
The count starts on the last day of the invoice month. Every invoice dated in June, whatever the day, is treated as if it were dated 30 June, and the stated number of days runs from there. That is why the table shows three June invoices sharing one due date under 30 days EOM. A supplier who invoices early in the month gives the most credit, and one who invoices on the last day gives no more than net terms would.
The two readings to settle first
Not everyone reads the abbreviation the same way. The common reading is the one above: 30 days counted from the end of the month. Some buyers read 30 days EOM as payment by the end of the following month, which on a June invoice means 31 July rather than 30 July, and others write terms such as the 20th of the month following, which is a fixed day rather than a count. The difference is a day or three, but it is exactly the sort of gap that turns a reminder into an argument. Write the rule out in words beside the abbreviation.
Why buyers ask for it
EOM terms let a buyer pay everything bought in a month in one batch. Their accounts team runs one statement, one approval and one payment run per supplier, which is cheaper to administer than paying invoices one by one. Business.gov.au notes that credit in business to business trade is usually set as a number of days such as 7, 14, 21 or 31, and that offering credit carries risk for the supplier. EOM is the buyer friendly end of that range.
What it costs the supplier
On a 3 June invoice, 30 days EOM is 57 days of credit, nearly twice net 30. Across a year of monthly work that is close to an extra month of revenue sitting with the customer. Small suppliers can reduce the cost by invoicing on completion rather than at month end, asking for 7 days EOM instead of 30, or taking a deposit up front. In Australia, large businesses report their payment times to small business suppliers under the Payment Times Reporting Act 2020, so it is worth asking a large customer for their published standard terms before agreeing to something longer.
Where it shows up in the product
Invoices in the proposals module work from a due date: an invoice turns overdue the day after it, and the reminder presets count from it. The standard preset, for example, sends a reminder three days before the due date, on the due date, then 3, 7 and 14 days after. If you trade on EOM terms, work out the actual date first, as in the table, so the overdue status and the reminders fire on the day your customer expects.
Questions people ask
Do EOM terms start from the invoice date or the delivery date?
From the end of the month in which the invoice is dated, under the usual reading. That is why suppliers on EOM terms invoice promptly when work finishes. If your contract says terms run from delivery or from receipt of a correct invoice, that wording overrides the abbreviation, so read the buyer's purchase order terms before relying on the table.
What does 20th of the month following mean?
It is a fixed date rather than a count. An invoice dated any day in June is due on 20 July. It works like EOM terms in that the invoice day does not change the due date, but the credit period is shorter than 30 days EOM. Many Australian trade accounts at hardware and building suppliers use this form.
Can a small supplier refuse EOM terms?
Yes. Terms are part of the agreement, so you can propose shorter ones in your quote or credit application, such as 7 or 14 days EOM, or net terms with a deposit. Large buyers sometimes insist on their standard terms, and then the choice is whether the work is worth the wait. Agree it before the first order, not after the first invoice.
How should EOM terms be written on an invoice?
Write the abbreviation and the rule, then the date: 30 days end of month, due 30 July 2026. Spelling it out removes the two-reading problem, gives the customer's accounts team a date to schedule, and gives you a date to quote if the payment is late. A short line in the payment terms is enough.
Is net 30 EOM the same as 30 days EOM?
People use both phrases for the same idea, credit counted from the end of the invoice month. Because some readers take net 30 EOM to mean payment by the end of the next month instead, it is another case where writing the actual due date beside the abbreviation saves a dispute later.
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Create a proposal with OneCraftRelated questions
- What does due on receipt mean?What does due on receipt mean on an invoice: payment is owed as soon as the invoice arrives, with no credit period. How it compares with net 7 and net 30.
- What does net 30 mean on an invoice?What does net 30 mean? The full invoice amount is due 30 days after the invoice date. How net terms work, variants like 2/10 net 30, and when to use them.
- What is days sales outstanding (DSO)?What is days sales outstanding (DSO): the average days customers take to pay, the formula, a worked quarter for a small trade business and how to read it.
- What is an overdue invoice?What is an overdue invoice: an unpaid invoice past its due date, when it becomes overdue, a reminder ladder by days late, and the UK and Australian rules.
Step by step in the builder: Send a proposal and get paid, then Set invoice reminders.
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