## TL;DR

Payment terms set the due date and any discount: net 30 means pay in 30 days; 2/10 net 30 means take 2% off if paid in 10 days. Agents should parse terms into a due date and a discount opportunity, prioritize discount capture by annualized return, and never miss a due date for lack of parsing.

## Steps

1. Parse terms into due date and discount terms.
   Expected: Structured terms.
2. Compute the annualized return of each discount.
   Expected: A prioritized list.
3. Schedule payments to capture high-return discounts.
   Expected: Real savings.
4. Pay everything else on the due date, not early.
   Expected: Cash preserved.
5. Track missed discounts as a KPI.
   Expected: Visibility into leakage.

## When to use

- Payment scheduling automation
- Discount capture programs
- Terms standardization

## When not to use

- Negotiating terms with vendors
- Disputed invoices
- Intercompany terms

## Compatibility

ERP-agnostic.

## Variant phrasings

### 2/10 net 30 meaning

### payment terms parsing

### early payment discount AP

## Root cause

Terms are the contract for when money moves. Agents that cannot parse them either pay late (damaging relationships) or leave discounts on the table.

## Edge cases

- Terms can be overridden by contract; check the master agreement
- Discounts need cash availability; coordinate with treasury
- Some vendors offer dynamic discounting; evaluate per invoice

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_tY9e1jcZJZhybgGf3NrarQ