A vendor has just submitted an invoice with payment terms of 1 percent ADI, Net 30 ADI. I also have one that is 2 percent ADF 30/Net 31. Do you know what those mean?


The terms you are referring to are commonly used in the Lumber industry. ADI stands for After Date of Invoice, and means that it is the invoice date that determines the starting point of your discount period. For example, for an invoice dated 3/3/04, it appears that you have until 4/2/04 to make a payment in order to receive the discount. ADF stands for After Deducting Freight, and means that you are to deduct the freight portion of the invoice before calculating the discount (freight is not subject to discount terms). We encourage you to contact your vendor to verify that they are indeed using these terms in this manner.

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