BUSINESS COMMUNICATION TERMS

BUSINESS COMMUNICATION TERMS

INVOICE PRO FORMA INVOICE CREDIT NOTE/MEMO, DEBIT NOTE /MEMO STATEMENT OF ACCOUNTS ELECTRONIC INVOICES COLLECTION LETTERS CONSIGNMENT NOTES DELIVERY NOTES TESTIMONIALS MEMOS CIRCULARS NOTICES MINUTES OF MEETING AGENDA

INVOICE

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. From the point of view of a seller, an invoice is a sales invoice. From the point of view of a buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term invoice indicates money is owed or owing

PRO FORMA INVOICE

The term pro forma (Latin "as a matter of form") is a term applied to practices that are perfunctory, or seek to satisfy the minimum requirements or to conform to a convention or doctrine. It has different meanings in different fields. In trade transactions, a pro forma invoice is a document that states a commitment from the seller to sell goods to the buyer at specified prices and terms. Simply, a 'Proforma Invoice' is Confirmed Purchase Order where buyer and Supplier agrees on the Product Detail and its cost (usually-Supplier currency) to be shipped to buyer. Sales quotes are prepared in the form of a pro forma invoice which is different from a commercial invoice. It is used to create a sale and is sent in advance of the commercial invoice. The content of a pro forma invoice is almost identical to a commercial invoice and is usually considered a binding agreement although the price might change in advance of the final sale. Banks usually prefer a pro forma invoice to a quotation for advance payment by the importer through his bank.

CREDIT NOTE/MEMO

A Credit Note or Credit Memo is a document used to adjust or rectify errors made in a sales invoice which has already been processed and sent to a customer. If you have already sent an invoice to a customer but now need to provide a credit for that invoice, you would send them a Credit Note or Credit Memo. You can think of a credit note as a "negative invoice." A Credit Note can also be raised for returned goods. After the sale, if the customer is not happy with the goods for various reasons like damage, expired he would return the goods. This transaction has to be reversed for accounting purposes and a special type called credit note can be used.

DEBIT NOTE/MEMO

When a company fails to pay or short-pays an invoice, it is a common practice to issue a debit memo for the balance and any late fees owed. In function debit memos are identical to invoices.

STATEMENT OF ACCOUNT

Summary of all transactions with a customer or a supplier that occurred over the previous month, quarter, etc., and their effect on an open-account balance. It is also called Account statement

ELECTRONIC INVOICE

Electronic Invoice is the electronic delivery and presentation of invoices, and related information sent by a company to its customers. EBPP Electronic Bill Presentment & Payment (typically focused on business-to-consumer billing and payment) EBPP is a form of electronic Invoice where a company bills its customers and receives payment electronically over the Internet An example would be of a public utility company offering this payment service to its consumers. A market has emerged for outsourced billing providers who specialize in electronic billing processes and technology for companies that need to send bills directly to their customers

COLLECTION LETTER

Written notification of the pending amounts, meant to prod past-due customers to make a payment. Collection letters are sent usually one after another, with the tone and language getting more direct with each successive letter, until at least some payment is received. An effective letter of collection achieves its purpose without destroying the customers' goodwill that was painstakingly acquired over the years.

CONSIGNMENT NOTE

Air Waybill (AWB) or consignment note refers to a receipt issued by an international courier company for goods and an evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the AWB is nonnegotiable. The AWB has a tracking number which can be used to check the status of delivery, and current position of the shipment

DELIVERY NOTE

Document accompanying a shipment of goods that lists the description, grade, and quantity of the goods delivered. A copy of the delivery note, signed by the buyer or consignee, is returned to the seller or consignor as a proof of delivery.

TESTIMONIALS

Written recommendation from a celebrity or satisfied customer affirming the performance, quality, and/or value of a product or service. Testimonials are one of the most potent tools of marketing. The term "testimonial" most commonly applies to the sales-pitches attributed to ordinary citizens, whereas "endorsement" usually applies to pitches by celebrities.

MEMOS

A memorandum or memo is a document or other communication that aids the memory by recording events or observations on a topic, such as may be used in a business office. The plural form is either memoranda or memorandums (MEMOS). A memorandum may have any format, or it may have a format specific to an office or institution.

CIRCULAR

Communication or publication issued to provide guidelines or information on a subject matter, such as how to comply with a regulation or statute.

NOTICES

Written or formal information, notification, or warning about a fact, required to be made in law or imparted by an operation of law. A party is deemed to have cognizance of a fact if the party (1) has actual knowledge of it, (2) has received notice of it, (3) ought reasonably to know it, (4) knows about a related or associated fact, or (5) would have known by making reasonable enquiries about it.

AGENDA

Ordered sequence of items to be discussed in a formal meeting. The objectives of an agenda include to
(1) familiarize participants with the topics to be discussed and issues to be raised, (2) indicate what prior knowledge would be expected from the participants, and (3) indicate what outcome the participants may expect from the meeting.

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