arrangement whereby all purchases made through the 25th of one month are payable within 30 days of the end of the following month. For example, purchases through the 25th of April would be payable by the end of June. EOM stands for end of month.
arrangement-common in the wholesale drug industry, for example-whereby all purchases made through the 25th of one month are payable within 30 days of the end of the following month; EOM means end of month. Assuming no prompt payment discount, purchases through the 25th of April, for example, will be payable by the end of June. If a discount exists for payment in ten days, payment would have to be made by June 10th to take advantage of it. End of month dating with a 2% discount for prompt payment (10 days) would be expressed in the trade either as: 2%-10 days, EOM, 30, or 2/10 prox. net 30, where prox., or proximo, means "the next."
