PGDBM Business Communication Terms[1]

8/3/2019 PGDBM Business Communication Terms[1]

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BUSINESS COMMUNICATION

TERMS


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INVOICE

PRO FORMA INVOICE CREDIT NOTE/MEMO, DEBIT NOTE /MEMO STATEMENT OF ACCOUNTS

ELECTRONIC INVOICES

COLLECTION LETTERS CONSIGNMENT NOTES

DELIVERY NOTES TESTIMONIALS

MEMOS

CIRCULARS NOTICES MINUTES OF MEETING AGENDA

BUSINESS COMMUNICATION TERMS


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An invoice or bill is a commercial document issued by a

seller to the buyer, indicating the products, quantities,and agreed prices for products or services the seller hasprovided the buyer.

An invoice indicates the buyer must pay the seller,

according to the payment terms. From the point of view of a seller, an invoice is a sales

invoice.

From the point of view of a buyer, an invoice is a

purchase invoice. The document indicates the buyer andseller, but the term invoiceindicates money is owed orowing

INVOICE
http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Payment_termshttp://en.wikipedia.org/wiki/Payment_termshttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Commerce


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The term pro forma(Latin "as a matter of form") is a term applied topractices that are perfunctory, or seek to satisfy the minimumrequirements or to conform to a convention or doctrine. It hasdifferent meanings in different fields.

In trade transactions, a pro formainvoice is a document that states acommitment from the seller to sell goods to the buyer at specifiedprices and terms.

Simply, a 'Proforma Invoice' is Confirmed Purchase Orderwherebuyer and Supplier agrees on the Product Detail and its cost(usually-Supplier currency) to be shipped to buyer.

Sales quotes are prepared in the form of a pro formainvoice whichis different from a commercial invoice.

It is used to create a sale and is sent in advance of the commercialinvoice.

The content of a pro forma invoice is almost identical to acommercial invoice and is usually considered a binding agreementalthough the price might change in advance of the final sale.

Banks usually prefer a pro forma invoice to a quotation for advancepayment by the importer through his bank.

PRO FORMA INVOICE
http://en.wikipedia.org/wiki/Latinhttp://en.wiktionary.org/wiki/perfunctoryhttp://en.wikipedia.org/wiki/Convention_(norm)http://en.wikipedia.org/wiki/Doctrinehttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Binding_agreementhttp://en.wikipedia.org/wiki/Binding_agreementhttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Doctrinehttp://en.wikipedia.org/wiki/Convention_(norm)http://en.wiktionary.org/wiki/perfunctoryhttp://en.wikipedia.org/wiki/Latin


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A Credit Note or Credit Memo is a document used to adjust or rectify

errors made in a sales invoice which has already been processedand sent to a customer.

If you have already sent an invoice to a customer but now need toprovide a credit for that invoice, you would send them a Credit Noteor Credit Memo. You can think of a credit note as a "negative

invoice." A Credit Note can also be raised for returned goods. After the sale, if

the customer is not happy with the goods for various reasons likedamage, expired he would return the goods.

This transaction has to be reversed for accounting purposes and a

special type called credit note can be used.

CREDIT NOTE/MEMO


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When a company fails to pay or short-pays aninvoice, it is a common practice to issue a debitmemofor the balance and any late fees owed.

In function debit memos are identical to

invoices.

DEBIT NOTE/MEMO
http://en.wikipedia.org/wiki/Balancehttp://en.wikipedia.org/wiki/Balance


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Summary of all transactions with a customer or asupplier that occurred over the previous month,quarter, etc., and their effect on an open-accountbalance.

It is also called Account statement

STATEMENT OF ACCOUNT
http://www.businessdictionary.com/definition/transaction.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/supplier.htmlhttp://www.businessdictionary.com/definition/month.htmlhttp://www.investorwords.com/5751/quarter.htmlhttp://www.businessdictionary.com/definition/open-account.htmlhttp://www.businessdictionary.com/definition/balance.htmlhttp://www.businessdictionary.com/definition/balance.htmlhttp://www.businessdictionary.com/definition/open-account.htmlhttp://www.businessdictionary.com/definition/open-account.htmlhttp://www.businessdictionary.com/definition/open-account.htmlhttp://www.investorwords.com/5751/quarter.htmlhttp://www.businessdictionary.com/definition/month.htmlhttp://www.businessdictionary.com/definition/supplier.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/transaction.html


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Electronic Invoice is the electronic delivery and

presentation of invoices, and related informationsent by a company to its customers.

EBPP Electronic Bill Presentment & Payment(typically focused on business-to-consumer billingand payment)

EBPP is a form of electronic Invoice where acompany bills its customers and receives paymentelectronically over the Internet

An example would be of a public utility company

offering this payment service to its consumers. A market has emerged for outsourced billing

providers who specialize in electronic billingprocesses and technology for companies that needto send bills directly to their customers

ELECTRONIC INVOICE
http://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/EBPPhttp://en.wikipedia.org/wiki/Electronic_billinghttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electronic_billinghttp://en.wikipedia.org/wiki/EBPPhttp://en.wikipedia.org/wiki/Invoice


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Written notification of the pending amounts,meant to prod past-due customers to make apayment. Collection letters are sent usually oneafter another, with the tone and language getting

more direct with each successive letter, until atleast some payment is received.

An effective letter of collection achieves itspurpose without destroying the customers'

goodwill that was painstakingly acquired overthe years.

COLLECTION LETTER
http://www.businessdictionary.com/definition/notification.htmlhttp://www.investorwords.com/205/amount.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/payment.htmlhttp://www.businessdictionary.com/definition/collection-letter.htmlhttp://www.businessdictionary.com/definition/tone.htmlhttp://www.businessdictionary.com/definition/letter.htmlhttp://www.businessdictionary.com/definition/effective.htmlhttp://www.investorwords.com/937/collection.htmlhttp://www.businessdictionary.com/definition/goodwill.htmlhttp://www.businessdictionary.com/definition/goodwill.htmlhttp://www.investorwords.com/937/collection.htmlhttp://www.businessdictionary.com/definition/effective.htmlhttp://www.businessdictionary.com/definition/letter.htmlhttp://www.businessdictionary.com/definition/tone.htmlhttp://www.businessdictionary.com/definition/collection-letter.htmlhttp://www.businessdictionary.com/definition/payment.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.investorwords.com/205/amount.htmlhttp://www.businessdictionary.com/definition/notification.html


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Air Waybill (AWB) or consignment note refers toa receipt issued by an international couriercompany for goods and an evidence of thecontract of carriage, but it is not a document of

title to the goods. Hence, the AWB is non-negotiable.

The AWB has a tracking number which can beused to check the status of delivery, and current

position of the shipment

CONSIGNMENT NOTE
http://en.wikipedia.org/wiki/Courierhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Courier


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Document accompanying a shipment of goodsthat lists the description, grade, and quantity ofthe goods delivered.

A copy of the deliverynote, signed by the buyer

or consignee, is returned to the seller orconsignor as a proof of delivery.

DELIVERY NOTE
http://www.businessdictionary.com/definition/document.htmlhttp://www.businessdictionary.com/definition/shipment.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/description.htmlhttp://www.businessdictionary.com/definition/grade.htmlhttp://www.businessdictionary.com/definition/quantity.htmlhttp://www.businessdictionary.com/definition/copy.htmlhttp://www.investorwords.com/1386/delivery.htmlhttp://www.investorwords.com/3351/note.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/consignee.htmlhttp://www.businessdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/consignor.htmlhttp://www.businessdictionary.com/definition/proof-of-delivery.htmlhttp://www.businessdictionary.com/definition/proof-of-delivery.htmlhttp://www.businessdictionary.com/definition/consignor.htmlhttp://www.businessdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/consignee.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.investorwords.com/3351/note.htmlhttp://www.investorwords.com/1386/delivery.htmlhttp://www.businessdictionary.com/definition/copy.htmlhttp://www.businessdictionary.com/definition/quantity.htmlhttp://www.businessdictionary.com/definition/grade.htmlhttp://www.businessdictionary.com/definition/description.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/shipment.htmlhttp://www.businessdictionary.com/definition/document.html


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Written recommendation from a celebrity or

satisfied customer affirming the performance,quality, and/or value of a product or service.

Testimonials are one of the most potent tools of

marketing. The term "testimonial" most commonly applies to

the sales-pitches attributed to ordinary citizens,whereas "endorsement" usually applies to

pitches by celebrities.

TESTIMONIALS
http://www.investorwords.com/4090/recommendation.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/quality.htmlhttp://www.businessdictionary.com/definition/value.htmlhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/marketing.htmlhttp://en.wiktionary.org/wiki/testimonialhttp://en.wikipedia.org/w/index.php?title=Sales_pitch&action=edit&redlink=1http://en.wiktionary.org/wiki/endorsementhttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Celebrityhttp://en.wiktionary.org/wiki/endorsementhttp://en.wikipedia.org/w/index.php?title=Sales_pitch&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sales_pitch&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sales_pitch&action=edit&redlink=1http://en.wiktionary.org/wiki/testimonialhttp://www.businessdictionary.com/definition/marketing.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/product.htmlhttp://www.businessdictionary.com/definition/value.htmlhttp://www.businessdictionary.com/definition/quality.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.investorwords.com/4090/recommendation.html


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A memorandum or memo is a document or

other communication that aids the memory byrecording events or observations on a topic,such as may be used in a business office.

The plural form is either memorandaormemorandums (MEMOS).

A memorandum may have any format, or it mayhave a format specific to an office or institution.

MEMOS
http://en.wikipedia.org/wiki/Documenthttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Officehttp://en.wikipedia.org/wiki/Officehttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Document


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Communication or publication issued to provide

guidelines or information on a subject matter,such as how to comply with a regulation orstatute.

CIRCULAR
http://www.businessdictionary.com/definition/communication.htmlhttp://www.businessdictionary.com/definition/publication.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.investorwords.com/1004/comply.htmlhttp://www.businessdictionary.com/definition/regulation.htmlhttp://www.businessdictionary.com/definition/statute.htmlhttp://www.businessdictionary.com/definition/statute.htmlhttp://www.businessdictionary.com/definition/regulation.htmlhttp://www.investorwords.com/1004/comply.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.businessdictionary.com/definition/publication.htmlhttp://www.businessdictionary.com/definition/communication.html


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Written or formal information, notification, or

warning about a fact, required to be made in lawor imparted by an operation of law.

A party is deemed to have cognizance of a fact if

the party (1) has actual knowledge of it, (2) hasreceived notice of it, (3) ought reasonably toknow it, (4) knows about a related or associatedfact, or (5) would have known by making

reasonableenquiries about it.

NOTICES
http://www.businessdictionary.com/definition/information.htmlhttp://www.businessdictionary.com/definition/notification.htmlhttp://www.businessdictionary.com/definition/warning.htmlhttp://www.businessdictionary.com/definition/fact.htmlhttp://www.businessdictionary.com/definition/required.htmlhttp://www.businessdictionary.com/definition/law.htmlhttp://www.businessdictionary.com/definition/operation-of-law.htmlhttp://www.businessdictionary.com/definition/party.htmlhttp://www.businessdictionary.com/definition/deemed.htmlhttp://www.businessdictionary.com/definition/actual-knowledge.htmlhttp://www.businessdictionary.com/definition/reasonable.htmlhttp://www.businessdictionary.com/definition/enquiry.htmlhttp://www.businessdictionary.com/definition/enquiry.htmlhttp://www.businessdictionary.com/definition/reasonable.htmlhttp://www.businessdictionary.com/definition/actual-knowledge.htmlhttp://www.businessdictionary.com/definition/deemed.htmlhttp://www.businessdictionary.com/definition/party.htmlhttp://www.businessdictionary.com/definition/operation-of-law.htmlhttp://www.businessdictionary.com/definition/law.htmlhttp://www.businessdictionary.com/definition/required.htmlhttp://www.businessdictionary.com/definition/fact.htmlhttp://www.businessdictionary.com/definition/warning.htmlhttp://www.businessdictionary.com/definition/notification.htmlhttp://www.businessdictionary.com/definition/information.html


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Ordered sequence of items to be discussed in a

formal meeting. The objectives of an agendainclude to

(1) familiarize participants with the topics to bediscussed and issues to be raised,

(2) indicate what prior knowledge would be expectedfrom the participants, and

(3) indicate what outcome the participants may expectfrom the meeting.

AGENDA
http://www.businessdictionary.com/definition/item.htmlhttp://www.businessdictionary.com/definition/meeting.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/topic.htmlhttp://www.businessdictionary.com/definition/issue.htmlhttp://www.businessdictionary.com/definition/prior-knowledge.htmlhttp://www.businessdictionary.com/definition/prior-knowledge.htmlhttp://www.businessdictionary.com/definition/issue.htmlhttp://www.businessdictionary.com/definition/topic.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/meeting.htmlhttp://www.businessdictionary.com/definition/item.html


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PGDBM Business Communication Terms[1]