DOCUMENTS OF HOME TRADE

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    1. Enquiry:

     

    • Sent by buyer to seller
    • Informs the seller of the goods required, the quantity, the time and terms of delivery

     

    1. Quotation:

     

    • Sent by seller to buyer
    • To inform regarding the goods requested and all the relevant information such as type, brand, size, price, terms of payment etc

     

    1. Catalogue:

     

    • May be sent as a substitute or supplement to quotation
    • Contains detailed and classified information of the goods available
    • Contain images of the goods
    • Prices not printed since they are subject to change and the catalogue is printed only once

     

    1. Price List:

     

    • Prices are not printed on catalogue since they are subject to change and the catalogue is printed only once
    • So a price list accompanies the catalogue, containing the prices of the goods the buyer has asked for

     

    1. Order:

     

    • Sent by buyer to seller
    • To place an order
    • States the type, brand, quantity and price (as per the quotation) of goods required
    • Includes terms of delivery, terms of payment and expected delivery date

     

    1. Advice:

     

    • Sent by seller to buyer
    • To inform him that goods have been dispatched
    • Includes the quantity and types of goods
    • Date and means of dispatch are also mentioned

     

    1. Delivery Note:

     

    • Sent by seller to buyer
    • To inform of the delivery of goods
    • States the quantity and type of goods along with order number
    • Usually arrives along the goods so that the buyer can check across the note whether the delivery is accurate or not
    • Handed back to the delivery boy so that seller has proof that the buyer has received the goods

     

    1. Invoice:

     

    • Sent by seller to buyer
    • To notify about the amount due on the goods supplied
    • States also the type, quantity, price and terms of payment

     

    1. Credit Note:

     

    • Not an invoice
    • To distinguish it from an invoice, it is printed in red
    • Sent from seller to buyer
    • It informs the buyer that his account is credited, decreasing the amount he owes
    • It is sent in the following situations:
      • The buyer returns damaged goods
      • The buyer returns empty containers for which he has been charged
      • The goods sold have been overcharged

     

    1. Statement of Account:

     

    • Sent by seller to buyer at the end of every month
    • Summarizes the monthly transactions
    • Shows the amount of goods bought, the returns made
    • Serves as a reminder for the buyer to pay if any credit is due
    • Enables buyer to check his book of accounts

     

    1. Receipt:

     

    • Proof of payment
    • Issued by seller to buyer after payment has been made
    CASH DISCOUNT TRADE DISCOUNT
    Deduction off the invoice price of goods given by seller to buyer A deduction off the list price of goods given by one trader to another
    Encourages prompt payment Encourages bulk buying
    Rate of discount varies with the delay in payment. The earlier the buyer pays, greater the discount he gets Rate of discount depends on the quantity of goods purchased. More the goods, more the discount.
    Buyer forfeits the discount if he does not pay within the given period No time limit of payment