Payment terms dating
A trade rate discount, sometimes also called "trade discount", is offered by a seller to a buyer for purposes of trade or reselling, rather than to an end user.
Trade discounts, also called functional discounts, are payments to distribution channel members for performing some function.
Trade Discounts are deductions in price given by the wholesaler or manufacturer to the retailer at the list price or catalogue price.
Cash Discounts are reductions in price given to the debtor to motivate the debtor to make payment within specified time.
The payment term of "net 30 days," for example, is calculated from the invoice date, so that the payment is due no later than 30 days from the date of the invoice.
The shipment date may be the date of the invoice if the invoice was produced the same day the goods were shipped.