Seasonal Dating
Under seasonal dating, the company considers an effective invoice date (rather than sales date) from when discounting period continue. This Term is used to persuade customers to buy early by not requiring payment until the purchaser’s selling season, regardless of when the goods are shipped. It is a term used to explain those unwed people who live their lives traveling and exploring the world.
If sales are seasonal, a firm may use seasonal dating on discount. For example A manufacturer company, sales on terms of 2/10, net 30, May 1 dating. This means that the effective invoice date is May 1, even if the sale was made back in January. The discount may be taken up to May 10; otherwise, the full amount must be paid on May 30. Here, the retailer is encouraged to order and accept delivery of the product well ahead of the peak sales period and then to remit payment shortly after the peak sales period. Increase sales to retailers who are not capable to finance the increase of inventories in advance of the peak selling period. All seasonal dating terms are calculated off of the Gross Invoice Amount.
