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C20BusinessDocuments
Term | Definition |
---|---|
Letter of enquiry | Document sent to seller from the buyer asking for information about the goods or services. |
Terms of sale | Payment and delivery details agreed by the seller and buyer during transaction. |
Cash with order (CWO) | Goods must be paid for when they are ordered |
Cash on delivery (COD) | Goods must be paid for when they are delivered |
Quotation | Sellers reply to the letters of enquiries with quotations. Contains the terms of sale |
Cash discount | Discounts offered if the buyer pays within a certain timeframe |
Trade discount | Discount on retail price of goods offered to businesses or customers buying in bulk |
Value added tax (VAT) | Government tax charged on goods and services |
Effective purchasing | Buyer gets a number of quotations to make sure they are getting the best deal on price, quality, terms of sale and delivery |
Order | Request to purchase goods |
Delivery docket | Signed proof that goods were delivered to buyer |
Invoice | Bill sent from sell to the buyer of the goods |
Errors and omissio excepted (E&OE) | Put at the end of an invoice so if the seller makes an error they have the right to correct it |
Receipt | Issued when seller receives payment |
Credit note | If a buyer returns a good the seller will send them a credit note containing information about the goods and the value of returns. |
Statement | Sent to regular buyers (businesses) from seller at set times showing all transactions and the balance owed. |
Electronic data interchange (EDI) | Exchanging documents electronically through emails instead of printing or writing out the documents |