- Enquiry:
- Sent by buyer to seller
- Informs the seller of the goods required, the quantity, the time and terms of delivery
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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 |