Invoices are full of abbreviations. If you have ever seen "FOB," "COD," or "EOM" on a bill and wondered what it meant, this glossary has you covered.

Payment Terms

  • Net 10 / Net 15 / Net 30 / Net 60 — payment is due within that number of days from the invoice date
  • EOM — End of Month; payment is due by the last day of the month
  • COD — Cash on Delivery; payment is required when goods are delivered
  • CIA — Cash in Advance; payment is required before goods are shipped
  • PIA — Payment in Advance (same as CIA)
  • 2/10 Net 30 — 2% discount if paid within 10 days; full amount due in 30 days
  • Due on Receipt — payment is expected immediately upon receiving the invoice

Document Types

  • INV — Invoice
  • PO — Purchase Order
  • SO — Sales Order
  • CN — Credit Note (a document reducing the amount owed)
  • DN — Debit Note (a document increasing the amount owed)
  • PI — Proforma Invoice
  • CI — Commercial Invoice
  • BOL / B/L — Bill of Lading (shipping document)
  • AWB — Air Waybill

Line Item Fields

  • Qty — Quantity
  • Desc — Description
  • Amt — Amount
  • EA — Each (unit of measurement)
  • Hr / Hrs — Hour / Hours
  • UOM — Unit of Measure
  • SKU — Stock Keeping Unit (product identifier)
  • HS Code — Harmonized System Code (international product classification)

Tax & Financial

  • GST — Goods and Services Tax
  • VAT — Value-Added Tax
  • TIN — Tax Identification Number
  • ABN — Australian Business Number
  • GSTIN — GST Identification Number (India)
  • EIN — Employer Identification Number (US)
  • ACN — Australian Company Number
  • BN — Business Number (Canada)
  • Excl. — Excluding (tax)
  • Incl. — Including (tax)

Shipping & Delivery

  • FOB — Free on Board; the seller's responsibility ends when goods are loaded for shipping
  • CIF — Cost, Insurance, and Freight; the seller covers costs until goods reach the destination port
  • DDP — Delivered Duty Paid; the seller handles all costs including customs and duties
  • EXW — Ex Works; the buyer is responsible for all shipping from the seller's location
  • FCA — Free Carrier; the seller delivers goods to a named carrier at a named place

Accounting

  • A/R — Accounts Receivable (money owed to you)
  • A/P — Accounts Payable (money you owe)
  • P&L — Profit and Loss
  • FY — Fiscal Year
  • YTD — Year to Date
  • B/F — Brought Forward (balance from a previous period)
  • C/F — Carried Forward (balance to the next period)

Example

An invoice might read:

INV-2026-048 | Terms: 2/10 Net 30 | FOB Destination

| Desc | Qty | UOM | Rate | Amt |

|---|---|---|---|---|

| Widget A (SKU: WDG-001) | 200 | EA | $3.50 | $700.00 |

| Shipping (CIF) | 1 | — | $45.00 | $45.00 |

Subtotal: $745.00

GST (10%): $74.50

Total (Incl. GST): $819.50

Every abbreviation on that invoice is standard and well-understood.

When to use abbreviations (and when not to)

  • Use them when your industry or client AP team expects them (Net 30, PO, GST).
  • Spell them out for new clients or consumer-facing bills (“Payment due in 30 days”).
  • Be consistent across every PDF — do not switch between “Qty” and “Quantity” at random.
  • Support the code with fields — Net 30 only helps if the due date on the invoice matches.

Common Mistakes

  • Making up abbreviations. Stick to industry-standard codes. Custom abbreviations confuse clients and accounting teams.
  • Not spelling out terms for new clients. If your client is not familiar with trade terms like FOB or CIF, include a brief explanation.
  • Using inconsistent abbreviations. Pick one format and use it on every invoice.