Invoices

Invoices or bills are usually rendered when the goods are delivered, but they may also be made out before or after delivery. Most invoices are prepared on printed forms with the firm's letterhead (invoice forms, US: billheads). A complete invoice contains the following details:

1. Name and address of buyer.

2. Date and number of invoice.

3. Date and number of order.

4. Quantity and description of the goods; marks, numbers, etc., of packages.

5. Unit price and extension;deductions, additional charges, etc.; total invoice amount.

6. Miscellaneous details, such as method of transport, terms of payment, etc.

Statements

Customers who have a current account with a supplier receive statements of account at regular intervals, for example, once a month or once every quarter. The statement is, in effect, a copy of the customer's account since it was last balanced. It shows the balance at the beginning of the period, all invoices rendered and payments received during the period (including debit and credit notes, if any), and the balance at the end of this period. The statement enables the two firms to compare the entries in their books; it also acts as a reminder to the debtor that money is still owing.

Debit and Credit Notes

Debit and credit notes (US: debit and credit memoranda, debit and credit memos) are exchanged between two firms when faulty goods or empty containers are returned by the customer, or when an error or omission in an invoice or statement has to be corrected.

When a debit note has been received and found correct, it is acknowledged by a credit note, and vice versa.

Specimen Letters

I. Dispatch Advice — Bill of Exchange Drawn

Dear Sirs,

We are pleased to inform you that your order of the 10th February has today been dispatched by rail.

As agreed, we have drawn on you for the amount of our invoice at one month. We enclose the draft, which please furnish with your acceptance and return to us.

Yours faithfully,

Encl.