Invoice

An invoice is a document which gives details of the quantity, the description, the value per unit and the total value of goods which are dispatched from a seller to a buyer. In addition discounts are often included (In home or domestic trade the Value Added Tax must be also included, and invoices now have a V.A.T. registration number).

The invoice is printed form with the seller’s name and address, telephone, telegraph and telex number. The seller writes the name and address of the buyer on the invoice.

An invoice sent to a buyer is a bill which tells the buyer the exact amount he must pay. It can also be a form of advice note. It may give details of the cost for information only, or it may be a statement of costs which must be paid before the goods are delivered. A Pro Forma Invoice is like this. It is like an invoice in every way, but it is used:

a. When the seller demands payment before he dispatches the goods. This may happen with new customers whose credit status is unknown.

b. For information. A Pro Forma Invoice may be a quotation, informing a buyer how much the goods cost, including the cost of freight and insurance if necessary.

c. When goods are sent on approval – that is, when the seller sends samples of goods to the buyer who can then inspect them before he decides to buy.

How an invoice is made out. When an order is received from a buyer the Sales Department passes copies to other departments such as accounts, packing and dispatch. If the goods are not in stock, a copy of the order is sent to the factory for manufacture.

The order is transferred to a printed form and copies of this form are sent to various departments. The Sales, Accounts and Dispatch Departments must have copies. The buyer’s name and address, the number of goods ordered, and the order number are typed on this form. Columns are left blank for the price of each good, and the total. One of these copies is retained by the Accounts Department, which completes the remaining columns - this copy is known as the invoice.

The Commercial (or Export) Invoice. This is an invoice which is used in exporting and includes details of shipment, freight and insurance. The Export Invoice is a very important document, and is required by banks when they issue credit, it is one of the shipping documents. It must be carefully made out, as it is the basis for the Bill of Landing.

The Consular Invoice. This is a type of invoice which is necessary for importing goods into some countries. It states the value for the customs authorities in the importing country. The exporter must guarantee that all the details on the invoice are accurate, and must sign it. The Consul of the importing country signs and stamps it also. There are three copies of the Consular Invoice. Two of these are sent to the port authorities in the importing country. The third copy is added to the shipping documents. The consular Invoice helps the customs authorities to clear the goods quickly, and to calculate the import duty correctly. It is often used to stop sellers evading the payment of duty, and can be used to compile the statistics for imports.

II. Answer these questions:

1. What details does an invoice contain?

2. How can be called the invoice sent to a buyer?

3. What other form can it be?

4. When does a seller demand payment before dispatching the goods?

5. Why are some goods sent for approval?

6. Where are copies of an invoice sent to when an order is received?

7. Who fills blank columns of these copies?

8. What details does the Commercial Invoice contain?

9. Why is the Export Invoice a very important document?

10. What is the Consular Invoice used for?

11. What does it state?

12. Who signs and stamps it?

13. Who does the Consular Invoice help?

III. Insert the correct words in the appropriate spaces:

Balance	quarterly	commercial	bill
basis	quotation	consular	retains
debit	clear	statement	duty
column	submit	open

An invoice is a (1)……….that is, a demand for payment. It can also be a (2)……….a regular notice of a buyer’s account with a seller. The statement invoice is for buyers who have an (3)……….account with sellers, and is often sent monthly or (4)………. In a statement each invoice is a (5)……….entry, and each payment by the buyer is a credit entry. There is a separate (6)……….in an invoice for the quantity of goods dispatched, and the description of the goods, the price for unit, and the total value. In the statement there is one each for debit and credit entries, and for the (7)……….

A Pro Forma Invoice is like an ordinary invoice, except that it is sent to the buyer for information before he buys, or for payment before the seller dispatches the goods. If the Pro Forms Invoice is for information, it a form of (8)………..a description of price and costs to help the buyer to decide.

An invoice which is used in international trade and includes the cost of freight and insurance is called a (9)……….or Export Invoice. This is one of the shipping documents and is very important for banks, customs, and shipping.

An invoice that is signed by the seller and an official from the importing country’s embassy or consulate is called a (10)……….Invoice. This invoice is very often used for customs authorities in the importing countries to make sure that the customs (11)………is paid. It is also used to help (12)……….a consignment through customs, to avoid a lengthy inspection and ling delay. When the invoice is made out, a copy is sent to the Packing and Dispatch Departments, and the Accounts Department (13)……….a copy. They fill in the columns for price and total value. These details must be accurate, as the invoice is the (14)……….for the Bill of Landing, and the exporter must (15)……….these two documents, the Export Invoice and the Bill of Landing to a bank for payment.

IV. Match these equivalents:

A	B
1.Advice note	a)Администрация порта
2. Clear the goods	b)Документация
3. Commercial/Export Invoice	c) Заказ
4. Consular Invoice	d) Фиктивная накладная
5. Credit status	e) Уведомление
6. Dispatch	f) Торговый счет-фактура
7. Order	g) Расценка
8. Port authorities	h)Растаможивать товар
9. Pro Forma Invoice	i) Отправлять
10.Quotation	j) Кредитный статус
11.Record	k) Консульская фактура

Note the words and phrases used to express how often or how regularly something occurs and insert them in the following sentences: