USA QUESTION ABOUT NET 30 ACCOUNT FORMAT

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My purchase orders have always had the terms stated as "0.00%/0/30". Every vendor I have dealt with has had no question that it signified a net 30 account with no discounts for early payment. Suddenly, I have one vendor demanding to have it read "0.00%/0/Net 30". Is the "net" absolutely necessary for legal reasons in standard practice? This change will require my IT department to make a change to the format in the software, so it's not as simple as typing it in. I was hoping to find a specific guideline (FASB, GAAP, etc) to illustrate if this is not a requirement. Thanks for any help.
 

kirby

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If everyone else understands this except for one bozo, just write that person a letter and explain your terms to them. Waste of time and money to change your system as I expect this type of person will not be satisfied and just pester you further.
 

smallbushelp

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The answer to your question is no, there's no official or legal guideline that says you have to include the word Net. Every company is free to print their company documents with whatever verbiage they choose. I think that common practice is to use the word Net but if it has been working for you without it, then there would be no need to change. Do as Kirby suggests and send the vendor a nice letter and explain your terms. And if they continue to make a fuss, get a new vendor.
 

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