Give two uses of each of the following documents:
(a) price list
(b) delivery note
(c) consignment note
(d) advice note
(e) proforma invoice
Explanation
(a)(i) The uses of the price list are: It is sent by a wholesaler to retailer to inform him of details of goods, such as prices and delivery terms.
(ii) It is used by retailers to compare the terms of different wholesalers.
(b) The uses of delivery notes are:
(i) It is used to confirm the goods on arrival before it is filed for reference.
(ii) It is used as evidence of delivery.
(iii) It is used when goods are transported by the wholesaler’s means of transport.
(c) The uses of consignment notes are:
(i) It is used when the wholesaler engages an independent transporter to convey the goods to the retailer.
(ii) It is used to show details of goods sent.
(iii) It is also used as evidence of delivery when duly signed by the consignee.
(d) The uses of advice note are:
(i) It is used to inform the buyer that his goods are on the way.
(ii) It is used to show the mode of transport used.
(iii) It is used to inform the consignee of the likely time the goods would arrive.
(e) The uses of pro forma invoice are:
(i) It is used to serve as a quotation.
(ii) It is used when goods are sent on approval to a customer.
(iii) It is used when dealing with a customer for the first time, as a polite way of refusing credit.
(iv) It is used as a reply to enquiries.