Business Document Flashcards
E and OE
Errors and omissions excepted
CWO
Cash with order
COD
Cash on delivery
Businss Documents
- Letter of Enquiry
- Quotation
- Order
- Invoice
- Delivery note (docket)
- Credit Note
- Debit Note
- Statement of Account
- Recepit
Letter of Enqury
A letter (or email) of enquiry is sent by the buyer to the seller asking about particular items and their terms of sale.
Terms of sale are the conditions attached to the sale of a product.
Quotation
A quotation is a written document that is sent by a seller to a potential buyer and shows the price of the goods and any terms of sale.
Order
An order is a written document sent by a buyer to a seller requesting the supply of the quantity of goods listed
Delivery
If the quotation says ‘Carriage paid; the seller of the goods will cover the cost of delivering the goods to the buyer. Otherwise, they will give a cost for postage or a courier
Price held:
The prices quoted might be valid for only a limited time. This encourages the customer to order quickly
Trade discount
This is a reduction of the selling price given to business customers. It is subtracted before the VAT is added on.
Cash discount
An extra discount may be given if the goods are paid for in a short period of time. For example, cash discount 5% for fourteen days. Sellers offer this extra incentive to encourage quick payment by buyers
Payment Terms
This is where details of the credit and payment terms are given, e.g a buyer may have up to thirty days to pay for the goods.
Order
An order is a written document sent by a buyer to a seller requesting the supply of the quantity of goods listed
Invoice
The invoice is a document sent by the seller to the buyer with the goods or shortly after the delivery of them.
It gives details of the quantity, price of the goods being sent, terms of sale and details about carriage.
Delivery Note (Docket)
The delivery note is a document sent by the seller to the buyer that lists the items being delivered.
Credit Note
A credit note is a document that is sent by the seller to the buyer to decrease the amount owed by them.
It is issued when goods that have been purchased on credit are returned to the seller and it would not be appropriate to provide a cash refund.
Debit Note
A debit note is sent by the seller to the buyer and will increase the amount owed by them.
It is used when there has been an undercharge on an account.
Statement of Account
A statement of account is sent by the seller to the buyer and is a summary of all the transactions between the two firms over a particular period of time.
It shows the full amount owed and will act as a request for any payment still owed at the end of the month.
Receipt
A receipt is a written document stating that the goods have been paid for.
It is signed by the seller and given to the buyer.
