Theory question 109
Purchase and Sale of GoodsCommerce 2 (essay)
Give two uses of each of the following documents:
(a) Price list
(b) Delivery note
(c) Consignment nore
(d) Advice note
(e) Proforma invoice
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(a) Price list – tells buyers the prices of goods (and terms such as discounts); lets retailers compare suppliers' prices; helps salesmen quote prices.
(b) Delivery note – sent with goods so the buyer can check them on arrival; when signed it is proof that goods were delivered.
(c) Consignment note – accompanies goods sent by an independent carrier (rail/road), giving details of the goods; signed by consignee as evidence of delivery; contract with the carrier.
(d) Advice note – informs the buyer that the goods have been sent; states when and how they were sent, so he can prepare to receive them.
(e) Proforma invoice – used where payment is required before delivery (cash with order); sent to agents with goods on consignment; used as a quotation; used to apply for import licence/foreign exchange.
Two uses for each document.