Sales Orders (SO) & Purchase Orders (PO) are 2 key trade documents in any business. They usually two important fields: Payment terms & Delivery terms. After a brief on these terms, we go on to explain Incoterms: internationally accepted trade-terms used in international contracts.<\/p>\n
Payment terms most often represent the payment instrument (cheques\/collaterals), credit period and discounts, if applicable. In the simplest form, P30 indicates that payment will be made 30 days after receiving the bill\/invoice. P30\/2%20 is a more complex term indicating that if the payment is done within 20 days (instead of the 30-day credit period), the buyer is entitled tot a 2% discount on invoice value. Payment terms could also be based on collaterals like L\/C (Letter of Credit) or Irrevocable credits that help minimize the seller\u2019s risk.<\/p>\n
Delivery terms are indicative of the agreement on delivery cost, responsibility (=risk) and ownership of transported goods\/services. Costs include freight charges, taxes & duties and commissions to clearing agents. As a seller, I may choose to transfer ownership at my premises {ExWorks}, at my port {Free Carrier}, after loading cargo on board air\/sea\/road\/rail vessel {Free On Board}, customer\u2019s port {Delivered Ex Quay\/Ship} or right up to ship-to address (address where goods are required to be delivered).<\/p>\n
Incoterms are delivery terms standardized by the International Chamber of Commerce (ICC) for use in international trade. The abbreviations along with description & associated buyer\/seller liability are mentioned here<\/a>.<\/p>\n Talking about commission, in reality commission is a sweeter word for greasing charges at ports; needed an example of organized crime, take this! How would it look if I had a ledger account called Bribes? Doesn\u2019t Agent Commission really sound decent? One of my uncles lives of this profession, so I won\u2019t say another word \ud83d\ude42<\/p>\n References:<\/strong><\/em><\/p>\n http:\/\/www.investopedia.com\/terms\/i\/incoterms.asp<\/a> Sales Orders (SO) & Purchase Orders (PO) are 2 key trade documents in any business. They usually two important fields: Payment terms & Delivery terms. After a brief on these terms, we go on to explain Incoterms: internationally accepted trade-terms used in international contracts. Payment terms most often represent the payment instrument (cheques\/collaterals), credit period … Continue reading Jargon: Incoterms (with a brief on Payment terms & Delivery Terms)<\/span>
\nhttp:\/\/www.export911.com\/e911\/export\/incoterm.htm<\/a>
\nhttp:\/\/en.wikipedia.org\/wiki\/Incoterms<\/a>
\nhttp:\/\/www.iccwbo.org\/incoterms\/id3045\/index.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"