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C20BusinessDocuments

TermDefinition
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
Created by: JDKelly
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