Model Business Letters, Emails and Other Business Documents, 7th Edition

12

Invoicing and settlement of accounts

The final stage in a business transaction is to send an invoice and receive payment of the amount owing for goods supplied or services rendered. In the retail trade, eg when you walk into a shop, supermarket or department store, transactions are usually for cash. In other business transactions, like wholesale and foreign trade, it is customary to allow credit.

Invoices and adjustments

When goods are supplied on credit, the supplier sends an invoice to the buyer to:

• inform the buyer of the amount due
• enable the buyer to check the goods delivered
• enable entry in the buyer’s purchases day book.

When an invoice is received it should be checked carefully, not only against the goods supplied but also ...