Post, Freight and Carriers

what is credit terms in an invoice?

what is Freight terms? i just want to know what the meaning of these terms in an invoice thanks

Public Comments

1. Freight terms are the shipping contract or method and cost. Credit terms are how it will be paid. Some companies require prepayment, if they haven't been paid yet, they don't ship. Most give you 30 days to pay, so you can place an order, wait for a monthly bill, and pay everything at once. It could be anything related to how it will be paid though--they could say pay in ten installments with this interest, if they wanted to.
2. Usually an invoice will say something like "Terms: Net 60" This means you have to pay the invoice withing 60 days.
3. The credit term of an invoice is the amount of time you have to pay the bill. The credit term "net 30" means the entire bill needs to be paid in 30 days. The freight terms would be who pays for freight, how the freight is shipped etc. Freight terms can include UPS charges, or trucking fees, also sometimes, handling charges.
4. Credit terms are set by the seller, they tell you when you have to pay and may offer a discount if paid early. For example our terms are 2% 10th, Net 30. Which means that if you pay by the 10th of the month after you receive the shipment you can take a 2% discount, or you can pay the invoiced amount in 30 days. There are a lot of freight terms available. I'll run through a couple of them: FOB=Means they will put the freight on a truck and you are responsible for the cost. FOB Delivered=They will pay the freight to your door. Prepaid=They are paying the freight Prepaid and Charge=They will prepay and add it to your invoice. As a manufacturer, we pay the freight on orders of a stated dollar amount typically $2000.00. Anything under that we will Prepay and Charge. This works well for our clients because we ship a lot of freight and can negotiate discounts based on volume that many of our customers can't. Hope this helps!
5. Credit terms usually refer to when and how this invoice is to be paid. Ex: Credit term: 30 days/net means it is to be paid in 30 days Freight terms: Seller pays or buyer pays again who and when. Upon delivery, upon shipping etc. Usually when you see terms it means just that. The who, what, where when, and how any given object or service is to be exchanged. Sometimes invoices are improperly coded if you have questions call the source and get a clear understanding of the terms. This can delay receipt of something but it's best to pick up the phone and clear things up before a mistake is made.