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Keywords
Business Documents
Term | Definition |
---|---|
Letter of Enquiry | This is sent to a supplier enquiring about the prices, terms and conditions under which he is prepared to supply his goods. |
Quotation | A document from a supplier stating the prices and the details of discounts, delivery and VAT. |
An order | A document sent by the buyer ordering the goods required. |
Delivery note | When the goods are delivered, teh buyer will sign this. It gives a list of the goods delivered. |
Invoice | This is the bill for the goods. It shows the quantity, description and price of the goods, details fo trade discount and VAT and the total due to the seller. |
Debit note | This is sent from seller to buyer if the seller undercharged the buyer on the Invoice or the seller omitted some items from the invoice. |
Credit note | This is sent from seller to buyer if the buyer has been overcharged on the invoice or the buyer returns goods to the seller. |
Receipt | When the seller receives payment, it is usual to issue this. |
E & OE | Errors and Ommissions excepted. This gives the seller the right to correct any errors discovered later. |
Trade discount | This is always deducted before adding VAT. |
VAT | Value Added Tax. This is always added to subtotal after deducting trade discount. |
COD | Cash on Delivery |
CWO | Cash with Order |
Effective purchasing | Choosing the supplier who offers the best deal in terms of price, quality, delivery and terms of sale. |