Document against payment: – The documents about the goods for delivery purpose will only be given when the bill is paid.
An advice note is written intimation sent by a supplier to his customer advising or informing him of he dispatch of goods. The advice note should reach the buyer before the goods reach him for the purpose of the note prepare him to take delivery.
A debit note is sent by a buyer to seller when he finds that he has received fewer goods than he had ordered. The note debits his account for the amount of goods not received.
A credit note is sent by the seller when he finds that fewer goods have been sent to the buyer than were ordered. The note is method of canceling the extra debit given by the buyer according to the original order.
Cash with order (C.W.O): – This is a type of advance payment. It means that cash must be sent when the order is placed and not when the goods are delivered.
A firm offer: – A firm offer is an offer made by a supplier or seller to sell goods at a certain price within a specified period, irrespective of market fluctuations. The chief advantage of making a firm offer is that it helps to create goodwill between buyers and sellers. A firm offer is usually made in connection with articles or commodities whose price is expected to rise or for which there is a great demand. For example, business circles may expect a rise in the price of steel articles in view of the union budget which is expected to be announced within the next twenty days.
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