Internal Trade

1. Internal Trade Documents used in Internal Trade

2. Internal Trade Contents Terms of Trade Documents used in Internal Trade Contents of this Module

3. Internal Trade Documents used in Internal Trade Debit Note Lorry Receipt Documents Used in Internal Trade Proforma Invoice Railway Receipt Credit Note

4. Documents used in Internal Trade Debit Note Debit note is a document issued to set off the accounts between the buyer and seller in case of purchase returns. If certain Part of the goods are returned to the seller, the buyer will not pay amount for the returned goods and he may sent a debit not to the seller mentioning that the sellers a/c will be debited to the amount of goods returned.

5. Documents used in Internal Trade Credit Note As in the case of Purchase return buyer may return the sold goods to the seller. In this case the seller has to refund the amount for the returned goods The seller in this case will send a credit note, so to adjust the amount debited in excess at the time of recording sales. The purchaser will send debit note against the credit note sent by the seller.

6. Documents used in Internal Trade Lorry Receipt/Railway Receipt This is a document which is accompanied by the transporters carrying the goods from one destination to another. The document specifies the description of material, quantity, value, name of consignor and consignee. After taking delivery of goods from the dock authority, the agent dispatches goods to his principal by railor by road and receives Railway Receipt (in case goods are sent by rail) or Lorry Receipt (in case goods are sent by road).

7. Documents used in Internal Trade Proforma Invoice Pro forma Invoice is an invoice is sent to the buyer to inform him about the sale transaction that has taken place. It also informs that the buyer has to pay’ the amount given in the invoice to the seller for the total value of goods purchased.In short, a Proforma invoice is an estimate of the cost of the proposed purchase of goods. It does not indicate the actual dispatch of goods.

8. Internal Trade Terms of Trade Errors and Omissions Excepted (E&OE) Free on Board (FoB Cost, Insurance and Freight (CIF) Cash on Delivery (COD) Terms of Trade Terms of Trade

9. Terms of Trade FOB & CIF FOB and CIF are the most popular commercial term in foreign trade. FOB means Free On Board. It means that all the costs up to the ship will be borne by the seller and once the goods are shipped the risk will pass on to buyer. CIF means Cost Insurance And freight. All the costs up to the port of destination will be borne by the seller and once the goods arrive at the port of destination the risk will transfer to the buyer.

10. E & OE Terms of Trade E&OE is an initialism standing for errors and omissions excepted.The phrase is used in an attempt to reduce legal liability for incorrect or incomplete information supplied in a contractually related document such as a quotation or specification. It is also used when a lot of information is listed against a product to state that to the best of the suppliers knowledge the information is correct but that they will not be held responsible if an error is found.

11. Cash On Delivery (COD) Terms of Trade COD is a type of transaction in which payment for a good is made at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good will be returned to the seller. This type of transaction is usually done through a shipping company and allows both the seller and the buyer of the product to minimize the risk of fraud or default. COD allows the purchaser to pay at the time of delivery instead of having to pay upfront.