~DAYMENTV 5¥ INVOICES AND STATEMENTS a Invoices + Ae requests for payment and, econds of transactions that give ‘the buyer andl seller information about what has been bought on sold, the terms of the sale, and details of the transaction. + May be accompanied by a shent covering letten on email offering. Pro forma invoices Jo one with the words jaro forma! typed on stamped on. fs wsede * df the customer has to pre-pay, * The customer wants to: make sure: quotation will net be changed, the Pre-forma will say exactly what and how they will be changed, + Sf goods ane sent on approval, on sale on return, + As acustoms document: A covening letter may accompany a prs forma inveize Statements of acount Rother than requiring, immediate payment of inveices, suppliens may offer credit: fir the end of the period, a Statement of flecount is sent to the customer, giving defail of ll the transactions belureen the buyer and sellen fon that period. The statement includes the balance on the account, which is brought forward from the previous period and. listed account nendened. Statements of account narely have lettens with them. \\\\Vay SETTLEMENT OF ACCOUNTS + Y Method of payment: trade within the UK + Bank dra + Bank tanser + Bil ef exchange + Cheque + Coedit transfor + Debit cand + falter of vedit + Cosh on delivery + Postoffice give + Prstlsaden Method of payment; trade outside the UK + Beak transfor + Bil op exchange + Cheque * Documentany credit + Gatenatonl bank draft + Saternational money ster + Gaternationa Post Ofie Gine + Premisiny note Advice of payment *+ Correspondence advising poyment:particulnly in the Uk, tends to be shont and awutine. + Correspondence confirming. peyment in trade Dransacions ute the UR may be mene complicated if you want te make specific points. & Acknowledgement of payment Conness ce acknowledging payment alse tends te be shont eeS| EXAMPLEINVOICE peat EXAMPLE STATEMENT OF ACCOUNTDears Cousin Example letter G Thank you for being se prompt in sending the documents for our last onder. 14463. (Ne have accepted the sight bill, and the bank should send you anadvice shortly. Wehave been dealing with you on a cash against documents basis Jor overa year and would like te change te payment by 4e-day bill of exchange, documents against acceptance. When we plst contacted you last February you told us that you would be prepared to neconsiden terms of payment once we had. established a trading association, (Ye think that sufficient time has elapsed fon us to be allowed the Teams we have ashed for. df you need, references, we will be glad te supply them. Ais we ane planning te send anethen onder within the month, could, you please confinm that you agree to these new terms of payment? Yours sincerely Peter Crane““EXAMPLE OF EMAIL Payment, packing Cy MackengieBros woges we the email ‘We have instructed our bank to arrange for a letter of credit for £6, 158.92 to be paid against & sear ee es Canadian Trust receive the documents. ‘Wo usually ask you to wrap each piece of crockery individually and pack no more than ten DO. compl lint ss into a crate to allow for easy and safe handing. This was not done with ourlast conlgnment andes consequence there were breakages (ee tiched Ia). We woukd ike ; ‘ther rpiacomonis io be incuded in cur next shipment. or your cre note about the packing Richard MacKenzie<> ‘DELAYED PAYMENT . = Asking for more time to pay Begin the letter with your creditor's name. CS Refer te the account and apologize in clear. Wotice the verb clean” and "settle" [an account) ane used nether than 'pay" + Sam sonny thatd was not able te clear my Jyly account: * Wenegnet we were unable te senda cheque te settle our account fon the last quanten.‘DELAYED PAYMENT Explain why you cannot clear the account; but not be dramatic Y * The deck strike which has been going onfon the past siewecks has made it impossible te ship our products, and as our customers have not been able to pay us, we have net been able to clear our own supplins' accounts yet * A warchouse flood destroyed the majonity of the Zenith goo components. (Je are waiting for our insurance company te settle our claim so that we can renew our stock and pay eur supplicns. * We were not able to settle the account because of the banknuptey od one of our main customers. The debt was considerable ancl its loss has made it dtgi.cultfon us to pay our supplier‘DELAYED PAYMENT You may be able te pay some moncy | Jf you cannot offer a part payment, on account (pant payment) give as precise a date of payment as oS + We will ty to settle your youwean invoice within the nextfour + Once the shike is ovenwhich weeks. Meanwhile the enclosed, should be within the nextfew days, cheque on $2,500.00 is pant we will be able te clean the payment on account: balance, + Als soon as the insurance company sends us compensation, we will settle the account: Ne expect this te be within the next tive weeksAgree Thank you for your letter concenning the outst. sanding balance ony our account f sympathize withthe problemyou have had in cle the balance: and. amuviling ‘te extendthe creditfon anether six weeks. Weuld you please confum that the credit will be settled then? DELAYED PAYMENT (Replying to the requests for more timet Refuse Thank you for your letter explaining why you cannot clear your January statement for $2167.54. 9 appreciate your difficulty, but we ourselves have te pay our own suppliens and, thencfone must insist on payment within the next Ten days. We look forwwand te receiving your remittance. Suggest a compromise Thank gp on ning rs bob the Moy ctor i eating Unjertnatly we cnn ete he credit rea opobal we tod a ore coahe ant jo prompt payne Novas tn ee the dicts you have ben having nth yan majn ets, she plpaned bo conprntic and agg tha ucla half th ulanding lalence Inmet by sng w chaque or SATLOO and cha the nemaind by the ent ements ek fant on penitence sa cmon thatthe blanc of the acount wil be ean in uly Se eesEXAMPLE 2 FIRST REQUEST Dear Robert J am writing concenning owr invoice We. H93lfor £919.63, a copy of which is enclosed: $t appears that this invoice has not yet been seltled. see from oun neconds that since we began Trading you have cleaned your accounts negulan $ on the due dates. That is why wondered if any problems have arisen which J might be able to help you with? Please let me know: if J can be of assistance. Youns sincerely R. Costello- (Sr)EXAMPLE 2 SECOND REQUEST Dean Sig. Giondianine With reference to: my letter of 10 flugust, J enclose copy irweices which made up your lune statement, the balance of which still remains outs eo ing dealt with tne} Nonckaneld Hue is @ secon oe ee iter Cost explanation as te why the balance of €6,000.00 has not been still avoids an cleaned. Please would you either reply with an explanation or unfriendly tone. send us a cheque te clean the account within the next seven days? Yours sincerely Even though thisZ EXAMPLE = THIRD REQUEST (FINAL DEMAND) Dean Mr Theopolis Aecount fe: TYG 990!4 We wrote to you on tive occasions, 21 October and 14 [fovember, of $8,541.46 and is made up of the copy invoices enclosed. We have waited three months for either a reply te explain why the balance has not been cleared, on a nemittance, but have received neither. We ane reluctant te take legal action te recover the amount, but you leave us ne alternative. ([nless we neceive your hemitlance within the nod ten days, we wif instruct oun solicitons te stant proceedings. Yours sincerely<> POINTS TO REMEMBER 1. There ane vanious methods of payment available through banks and the Y Post Office. 2 fetters advising and acknowledging payment tend to be short and, routine, but they may be used te propose new terms of payment on te make complaints. 3. df you are ashing fon mone Time te pay, you should apologize fon not having cleaned the account on the due date, explain why you have net paid, and when and how you intend te clear the balance. Remember, your creditons ane mone interested in when they will get their money than in good excuses. 4. Thaee steps are usually taken by a supplien to necoven a. debt:Tradelinks ResourcesAl THANK YOU QJ