i. Letter of Inquiry:
The buyer sends the documents to the seller/supplier in order to find out about the availability of goods, the prices, terms of payment, and delivery. It is a request to the supplier to provide information about the product needed.
ii. Catalogue/Price List:
This is a pictorial document which shows the representation of goods available for sale. It contains the photographs, features and price of goods. This enables the potential buyer to sell the samples
Price list is sent by the seller to the buyer to give information about the current prices of goods.
iii. Quotation:
This is the reply given by the supplier to the letter of enquiry. It states the price, terms of payments, delivery dates and discount, if any.
Uses of a Quotation
a. It is used as a reply to an enquiry.
b. It shows the current price.
c. It shows the terns of trade.
iv. Order:
This document is sent by the prospective buyer if he is satisfied with the conditions and terms of the transactions. It states the quantity of goods required and all the necessary details about the package of the goods.
v. Invoice:
This is a document sent to the buyer by the seller showing full details of goods sold. Such as quantity, description, price, discount and the total amount to be paid. It shows a comprehensive summary of a transaction. It is issued along with the goods.
Responses