Otázka: All the year round
Jazyk: Angličtina
Přidal(a): MarkyK
Importance of payment
– Payment is important and necessary part of every business. People sell their products and the buyers have to pay for them.
– The most often used way of payment in business is using invoices.
Invoices
– Invoices are records of transactions and they give sellers and buyers information about their business:
- what was bought or sold
- terms of the sale
- details of transaction
– The invoice can be accompanied by a short letter with some additional information.
– Pro-forma invoice is used if the customer has to pay before receiving the goods or if the goods are sent on approval. Words ‘pro-forma’ are typed or stamped on it.
Structure – every invoice should contain:
- the date
- buyer’s address
- seller’s address
- number of the invoice
- number of the order
- quantity
- description
- catalogue number
- the price of the product
- the total price
- bank details
There should be also mentioned:
- VAT
- discounts
- currency
- the date when the invoice has to be settled
Other methods of payment
- Postal order – it can be bought from the post office, usually to pay small amounts of money.
- Cheque – it is a customer’s written order to his bank to pay a certain sum of money out of his account to the payee named in the cheque.
- Bank transfer – money is simply transferred from the bank account of the buyer in his own country to the bank account of the seller in the seller’s country.
- Bill of exchange – they are credit instruments which can be turned into money later. It is negotiable instrument which can be used by holder to pay his debts or it can be left in a bank as security for a loan.
- Stamps
Terms of payment
- Payment on an open account
The seller, when he receives an order, sends the goods and the invoice to the buyer. When the buyer receives the goods, he pays by bank transfer to the seller. In this way the seller does business only with long-lasting customers.
- Payment by a letter of credit
It is used to protect the interests of both the buyer and the seller. There are four parties to this transaction – the seller, the seller’s bank, the buyer, the buyer’s bank.
Payment problems
They can be caused:
– by not paying on purpose
– by insolvency of the customer
– by misunderstanding
– by technical problems
We should use the methods of payment which can limit the risks.
Questions:
What do you know about postal order?
How does bank transfer work?
How does payment on an open account work?
How does payment by a letter of credit work?
What do you know about invoices?
Some useful words
- Invoice faktura
- Postal order poštovní poukázka
- Cheque šek
- Bank transfer bankovní převod
- Bill of exchange směnka
- Stamp kolek
- Letter of credit akreditiv
- On purpose záměrně
- Misunderstanding nědorozumění
