Discuss the process of getting your t-shirt line into brick and mortar stores and selling offline. Topics include industry tradeshows, events, line sheets, sales reps and other retailing tips and advice.
I believe the day they ship it to you.
Unless the things have changed recently due to tracking method, but still who want to argue about receving date and time?
From Wikipedia: Net 30 is a form of trade credit which specifies payment is expected to be received in full 30 days after the goods are delivered.
Net 30 terms are often coupled with a credit for early payment; e.g. the notation "2% 10, net 30" indicates that a 2% discount is provided if payment is received within 10 days of the delivery of goods, and that full payment is expected within 30 days. For example, if "$1000 2/10 net 30" is written on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 10 days
I start counting the day the order is shipped.. I dont give discount for early payment.. but I add money if not paid within the 30 days.. Its on my invoice that they sign..
I think it varies depending on the company. Splathead and Mystysue are both right. In my biz, I ask for a 50% down and the balance will be paid in 30 days from the day it was delivered.
If you are referring to a blank t-shirt vendors, where you get the hanes, gildan, etc. you can order it on the 1st of the month (just an example) and you can pay it on the 30th. Pay on time to establish a good credit record which other future vendors will refer to when you apply credit to them.
Fob, freight on board, once it leaves your dock, it belongs to the customer and your invoicing, which is usually done that day, starts the Net 30 ticking.
I used to work the docks for a while. We didn't always "receive" all the goods the same day, or week, they came in. Then there was the "search and destroy" pallet. Things that came in that we couldn't identify to a P.O., so it sat "unreceived".
Net 30 can't start when your customer "receives" your goods. You don't want to hang your payment up on someone else's timetable for processing work.
Usually the items on our search and destroy pallet were identified by the A/P people, which I was that for 2 years before I took my mandatory rotation on the dock (weird company policy), anyway, our vendors would bill us when they shipped, we'd get the invoice, not show a shipment of goods "received" in the system, so we'd have to go to the dock after the company sent a POD, "proof of delivery", showing us we were in possesion of it. I'd look around the search and destroy pallet, find the crap, get the folks to "receive" it, and get the billed paid. I better have that done before Net 30 on that invoice, or we're getting hit with the late charges that Sue is mentioning.
Hope this helps clarify the situation a little more.
I think you have to discuss the definition of net 30 with your vendor. With our vendors, terms have started the day they shipped.
As far as early payment goes (on net30), another benefit to that is that if you are trying to build business credit, early pays can boost your paydex score above 80 (a credit score used by Dun and Bradsteet to show how you pay your bills, which is also used by vendors to determine if you are worthy of net terms). 80 is the score to have- means you pay your bills on time and are never late. Only way you can get higher than that is if you pay your bills early on discount terms, such as 2%10net30. A score above 80 is rare and desirable.
Really, the correct answer is, Net 30 means anything you, the shipper, says it means. Other sources from the web
Quote:
In the absence of a contrary definition in a contract or an industry specific meaning being applied to “Net 10 Days,” when “Net 10 Days” appears on an invoice, it usually means that the supplier expects payment within 10 days of some triggering event. The triggering event often falls into one of three categories which are:
Delivery of the products or services
Acceptance of the products or services
Receipt of invoice
Usually, the triggering event is specified in the document
And from Quickbooks, someone who should really know what it means:
Quote:
QuickBooks uses the payment terms to determine the due date. For example, if the terms are Net 30 (which means, "balance due in 30 days") and the date of the bill is January 1, QuickBooks enters the due date as January 31.
Joe, I'd forget the first source, the sentence starts with the words "In the absence of a contrary definition in a contract or an industry specific meaning being applied .... " ... and for Net 30, there is an industry specific meaning.
The second source is right on, stick with Quickbooks.
Cody,
Here's another link as well, in addition to Joe's info from Quickbooks. There is a colorful calendar about 1/3 of the way down the page, it'll lay it out visually:
how net-30 works? 
