Receipt Of Goods (ROG) Dating Method For Cash Discounts In Business For Invoices Explained
1 هزار بار بازدید -
2 سال پیش
-
In this video we discuss
In this video we discuss receipt of goods dating for cash discounts in business. We cover the terms in this dating method and how to compute the due dates for the discount and net payment.
Transcript/notes
In business, cash discounts are offered to encourage prompt payments. Receipt of goods dating is one of the methods used for cash discounts.
It is typically written like this. (3/15 ROG). This is read as 3, 15, ROG.
The first number is a percent discount, in this case 3%, the second number is a date range for the discount, so in this case, 15 days, and ROG means receipt of goods.
And what this is saying is that a 3% cash discount may be taken if payment is made within 15 days from the date the goods are actually received.
As an example, let’s say that some merchandise is ordered on February 22nd with the terms 3/15 ROG. The order is for $1000 and the goods are received on March 18th. The discount date will be 15 days from the date the goods were received, March 18th. There are 31 days in March, 31 minus 18 equals 13. To get to 15 days we need to go 2 days into the next month of April, so 4/2, April 2nd is the discount date.
And the discount will be 3% of $1000, $30. So, $970 will be due on April 2nd for the discount.
And one note, when no net payment date is given, it is common practice to allow 20 days after the last discount date, so, in this example, $1000, the full invoice amount would be due April 22nd.
Chapters/Timestamps
0:00 Terms of receipt of goods invoice dating explained
0:24 Receipt of goods dating explained
0:35 Example of receipt of goods invoice dating
1:11 When no net payment date is given
Transcript/notes
In business, cash discounts are offered to encourage prompt payments. Receipt of goods dating is one of the methods used for cash discounts.
It is typically written like this. (3/15 ROG). This is read as 3, 15, ROG.
The first number is a percent discount, in this case 3%, the second number is a date range for the discount, so in this case, 15 days, and ROG means receipt of goods.
And what this is saying is that a 3% cash discount may be taken if payment is made within 15 days from the date the goods are actually received.
As an example, let’s say that some merchandise is ordered on February 22nd with the terms 3/15 ROG. The order is for $1000 and the goods are received on March 18th. The discount date will be 15 days from the date the goods were received, March 18th. There are 31 days in March, 31 minus 18 equals 13. To get to 15 days we need to go 2 days into the next month of April, so 4/2, April 2nd is the discount date.
And the discount will be 3% of $1000, $30. So, $970 will be due on April 2nd for the discount.
And one note, when no net payment date is given, it is common practice to allow 20 days after the last discount date, so, in this example, $1000, the full invoice amount would be due April 22nd.
Chapters/Timestamps
0:00 Terms of receipt of goods invoice dating explained
0:24 Receipt of goods dating explained
0:35 Example of receipt of goods invoice dating
1:11 When no net payment date is given
2 سال پیش
در تاریخ 1401/08/24 منتشر شده
است.
1,031
بـار بازدید شده