Statements

Customers who have a current account with a supplier receive statements of account at regular intervals, for example, once a month or once every quarter. The statement is, in effect, a copy of the customer's account since it was last balanced. It shows the balance at the beginning of the period, all invoices rendered and payments received during the period (including debit and credit notes, if any), and the balance at the end of this period. The statement enables the two firms to compare the entries in their books; it also acts as a reminder to the debtor that money is still owing.

Debit and Credit Notes

Debit and credit notes (US: debit and credit memoranda, debit and credit memos) are exchanged between two firms when faulty goods or empty containers are returned by the customer, or when an error or omission in an invoice or statement has to be corrected.

When a debit note has been received and found correct, it is acknowledged by a credit note, and vice versa.

Specimen Letters

I. Dispatch Advice — Bill of Exchange Drawn

Dear Sirs,

We are pleased to inform you that your order of the 10th February has today been dispatched by rail.

As agreed, we have drawn on you for the amount of our invoice at one month. We enclose the draft, which please furnish with your acceptance and return to us.

Yours faithfully,

Encl.

II. Shipping Advice

Dear Sirs,

Your Order No. 177, dated 17th October

This is to advise you that the above-mentioned order be shipped on board the vessel "Ubana" from London to Mombasa on 25th November.

We are pleased to hand you enclosed copy of commercial invoice amounting to ..., as well as non-negotiable copy of the bill of lading.

The original shipping documents (commercial invoice in triplicate, customs invoice in duplicate, full set of clean on-board bills of lading and certificate of insurance) have been presented to our bankers for collection through Barclays Bank, International Ltd. Nairobi, Kenya, on a sight draft basis.

We shall be glad to hear that the goods have arrived safely and in good order.

Yours faithfully,

Encl.

III. Manufacturer Advises Exporter of Impending Completion of Order

Dear Sirs,

The Wire-Drawing Machine you ordered on the 15th May for an overseas customer will be completed in about a fortnight.

We should therefore be glad to receive your packing and marking instructions. Perhaps you would also let us know whether measurements, gross weights and net weights are to be stenciled on the cases.

We understand that you will arrange for the collection of the shipment at our Sheffield Works, and we shall advise you as soon as the machine has been packed.

Yours faithfully,

VI. Payment

Acknowledging Receipt of Goods and Making Payment — Acknowledging Receipt of Payment

Acknowledging Receipt of Goods and Making Payment

When the buyer receives the goods delivered by the seller, he will examine them carefully; if he finds them to be in order, he will, in many cases, send the seller an acknowledgment of receipt. Should a remittance be made at the same time, an advice to this effect is included in the acknowledgment.

Before payment is effected, the buyer carefully checks the seller's invoice or statement and compares it with his own records. If he discovers any error or discrepancy, he will notify the seller immediately. The matter is then investigated by the latter and, if it is found that the buyer was right, a correction is made.

In settling indebtedness the following means of payment may be used:

1. cash,

2. postal orders and money orders,

3. cheques and bank drafts,

4. bank transfers,

5. bills of exchange and promissory notes,

6. documentary credits.