(a) Letter of Enquiry is sent by persons who wish to be informed of what goods and services and the prices of these that a company offers for sale.
(b) The company may resend either a quotation or a catalogue
A catalogue is a booklet with a brief description and pictures of articles for sale. Since a catalogue is costly, some companies opt to send a quotation instead. A quotation lists all the goods in stock along with their prices.
(c) If there is an interest to purchase an item in the catalogue then an order letter is sent requesting goods to be supplied.
The following three documents (items d, e & f) accompany goods delivered.
(d) Delivery Note must be signed by the person receiving the items ordered. This is proof that goods were delivered. A copy of the delivery note is given to the buyer.
(e) Consignment noteis sent when the firm does not have its own transportation. A transport company is paid to deliver the goods. A consignment note will be prepared by the consignor (the sender) and given to the transport company. It contains information about the destination of goods and the name of the consignee (the receiver).
(f)An Invoice is a bill sent with goods delivered. Invoices may also be sent after goods have been delivered.
Terms 5% 30 days – A Discount of 5% will be given if the customer pays within 30 days. E & OE – means errors and omissions, i.e. if any mistakes were made on the invoice the company will make the correction.
(g) Pro forma Invoice is a temporary invoice. It is used in cases where funds are being borrowed from financial institutions to purchase items. The institution may request a pro forma invoice as proof of items to be purchased when the loan is disbursed. It may also be sent with goods not ordered and in this instance is a form of advertising. If the customer is interested in the items sent, an actual invoice is sent.
(h) Credit note is issued to a customer when there has been an overcharge on an invoice due to faulty arithmetic, when goods have been returned because of damage or refunds requested for goods not received. A credit note is printed in red.
(i) Debit note is sent to a customer whenever there is an undercharge or omission on the invoice.
(j) Statement of Account is a document from a supplier to a customer outlining all the transactions carried out over a particular period. A statement is usually sent monthly.
(k)A receipt is given for cash payment.
(l) Stock cards are used to keep a record of all stocks entering and leaving the stockroom. This procedure ensures that stock level do not fall below a minimum resulting in the depletion of stocks.