Category 1
The period of time within which an invoice must be paid if a discount is to be taken.
What is a Discount Period
A notice informing customers about a decrease in the balance of their account that needs correction.
What is a Debit Memorandum
When a buyer returns merchandise that it had purchased from a supplier
What are Purchase Returns
A reduction in the selling price of goods that a seller grants to a buyer due to minor defects in the products sold or other issues that make the product less valuable to the buyer.
What are Purchase Allowances
The buyer’s cash discount for early payment of an invoice on account.
What is a Purchases Discount
A commercial source document that is issued by a business' purchasing department when placing an order with its vendors or suppliers.
What is a Purchase Order
A stamp placed on a creditor’s invoice that outlines the steps to be followed in processing the invoice for payment.
What is a Processing Stamp
The sale of goods that takes place when the seller or provider of those goods ships out a product
What is the FOB Shipping Point
A written request that a specified item or items be ordered.
What is a Purchase Requisition