Documents Used In Buying And Selling Of Goods

Documents Used In Buying And Selling Of Goods


This commercial document allows for the sale and purchase of goods.

Relevant documents should support all business transactions to prove authenticity and record purposes.

Types of current commercial documents

1Trade Journals8Advice Note
2Let us know if you are interested in our services9Consignment note
3Price list and catalogue10Credit note
4Quote11Debit note
5Place an order12Statement of A/C
6Invoice13Proforma invoice
7Delivery Note14Receipts



These publications are information sources for the buyer. They contain articles about specific trades. This includes price, payment conditions, sales terms, and delivery. The journal will also include the address where the goods can be obtained.



The buyer writes a letter to the supplier or producer asking for information about specific goods. Before the buyer decides on which product or item to purchase, it will ask about delivery, payment terms, and other pertinent information.

E.g., E.g.


P.O. BOX 43 Onitsha


P.O. BOX 12



The above address urgently requires 200 personal computers in our company.

We would appreciate it if you could let us know if the product is yours and provide the best terms for supply. Please also include the payment term and price.

Yours faithfully

Odokpe.C. (Mr.)



A catalog and price list is a type of book that contains color pictorial photos of goods. It shows descriptions, features, prices, and the price of goods made by a specific firm. With the different sizes of products of the firm, the current prices are displayed.

Uses for price list and catalog:

  1. It’s a medium for advertising.
  2. It displays the image of the product.
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iii. It helps customers make the right choice.



This is a statement that a supplier prepares for a specific order. It shows the correct price and terms. The supplier sends it to the buyer to indicate the price, payment terms, and delivery period. It is often sent to the buyer as a reply letter to an inquiry.

Example Quotation


Box 12

13th May 2001


Box 43

00290B Milk70.00
003140M Milk200.00
005110S Milk80.00

Delivery within 14 days

Cash Discount 2% Within 21 Days

Orders qualify for a 3% discount when you trade.



An order is a document that the buyer sends to the seller. It contains the complete description and quantity of the goods ordered. The order will include information about the goods, including the type and delivery method.

E.g., E.g.

Please complete the following.


Box 43

21 1st May 2001.


P.O. Box12

Please complete the following

50002B Milk70.003,500
120003M Milk200.0024,000
110005S Milk80.008,800


Invoices are commercial documents that provide a summary or complete overview of transactions involving the sale or purchase of goods. The term E. & O.E. is common on invoices. (Errors and omissions expected).

The seller sends this document to the buyer to give him all details about the following:

  1. Description and a list of the goods purchased.
  2. Prices and quantity of each purchase
  3. Packing charges
  4. Transport means
  5. Delivery and payment terms
  6. After the discount, the total amount to be paid by the buyer
  7. Discounts available
  8. Name and address details of suppliers



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00250Big milk70.003,500
003120Medium milk200.0024,000
005110Small milk80.008,800
Less 3% trade discount1,089

Terms: 2% Cash Discount within 21 Days

Orders from E.O. eligible for a 3% trade discount E.O. & E


This document is usually included with the delivery of goods. This document provides the buyer with information about a consignment’s exact contents. It allows the buyer to inspect the goods and ensure that they have been delivered by the seller’s method of transport. The seller usually sends the note to the buyer to be signed.

If the goods are correct, when the buyer receives them, he/she signs one copy and returns the second copy.



P.O. P.O. Box 12

Please send us your order

Catalogue RefQtyDescription
00250Big milk
003120Medium milk
005110Small milk
21 MayB. milk3,5003,500
21 MayS. milk2,40024,00027,500
24 MayCash25,00025,000
26 MayM. milk3,000
26 MayCash3,5002,000



This is an invoice that is typically submitted before goods are shipped. It is a polite request to pay in advance if the seller is unwilling to sell credit or to show the goods.

Proforma invoice

  1. It is a polite request to pay before the goods are shipped.
  2. If the seller is unable to sell credit, it can be used.
  3. It can also be used to reply to an inquiry as a quote.
  4. This is when goods are shipped through an agent.
  5. It also outlines the terms and conditions of the sale.
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Documents Used In Buying And Selling Of Goods


This document acknowledges payment from the buyer. This document serves as proof of payment for goods.


  1. It is used as proof of payment
  2. It lists the amount received as well as to who it was sent.
  3. It displays the date of payment.
  4. Receipts are used for auditing purposes.


  1. DISCOUNT This is an allowance that a buyer receives in exchange for lowering the price of goods. It’s intended to encourage bulk purchases and prompt payment. It reduces the amount that someone pays for something.


  1. Cash DiscountThis discount is given to customers to encourage them to pay within a specified time period. This is a reduction that sellers offer to customers to encourage them to pay within a specified time frame, etc. To ensure prompt payment.
  2. Seasonal discount: A producer gives a price cut to a buyer who orders, receives, and pays for goods in the off-season or before the selling season. Customers will receive a discount on Valentine’s cards produced during December.
  3. Quantity Discount This discount is offered by the supplier as an incentive to purchase large quantities of goods in one order. A large quantity order can reduce the supplier’s overhead costs and transport fees.
  4. Trade Discount This is a basic discount for middlemen to induce them to perform certain functions in the channel. It also covers the operating costs and profit.

The reasons for granting a discount

  1. This is often done to attract customers.
  2. To encourage prompt payment in a stimulated time, a cash discount is offered
  3. It acts as an incentive to increase bulk purchases.
  4. It is used to generate large profits for retailers.
  5. This reduces the chance of the capital being tied down.


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