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THE BUSINESS TRANSACTION. THE PEOPLE INVOLVED IN THE SALES TRANSACTION BUYERSELLER TRANSPORT AGENTS BANK.

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Presentation on theme: "THE BUSINESS TRANSACTION. THE PEOPLE INVOLVED IN THE SALES TRANSACTION BUYERSELLER TRANSPORT AGENTS BANK."— Presentation transcript:

1 THE BUSINESS TRANSACTION

2 THE PEOPLE INVOLVED IN THE SALES TRANSACTION BUYERSELLER TRANSPORT AGENTS BANK

3 STAGES OF A SALES TRANSACTION ENQUIRY REQUEST FOR FURTHER INFORMATION ORDER PAYMENT VOLUNTARY OFFER REPLY TO ENQUIRY CONFIRMATION AND EXECUTION OF ORDER DISPATCH OF THE GOODS More details

4 VOLUNTARY OFFER: promote a product and contact new customers ENQUIRY: ask information about products, prices, discounts, means of payment required, delivery, sales terms REPLY: give the information requested ORDER: order the goods + give details about the goods ( description and quantity), price and means of payment,instructions about transport, packing, insurance, documents, delivery time CONFIRMATION OF ORDER: confirm the order and dispatch the goods according to instructions PAYMENT: the buyer pays for the goods ordered

5 AGREEMENT or SALES TERMS QUALITY DELIVERY PAYMENT

6 QUALITY TERMS ON EVIDENCE ( MERCE AVISTA) BY DESCRIPTION/BY TRADEMARK ( VENDITA SU DESCRIZIONE) BY SAMPLE ( VENDITA SU CAMPIONE ) BY PATTERN (VENDITA SU CAMPIONE TIPO)

7 DELIVERY TERMS READY DELIVERY: (CONSEGNA IMMEDIATA) PROMPT DELIVERY: ( PRONTA CONSEGNA) FORWARD DELIVERY/ DELIVERY BY…. ( CONSEGNA IN UN PERIODO SPECIFICATO)

8 PAYMENT TERMS CASH WITH ORDER/PAYMENT IN ADVANCE (PAGAMENTO ALL’ORDINE/ANTICIPATO) CASH ON DELIVERY: (PAGAMENTO ALLA CONSEGNA) PAYMENT BY INSTALMENTS: (PAGAMENTO A RATE) DAA/DOCUMENTS AGAINST ACCEPTANCE DAP/DOCUMENTS AGAINST PAYMENT

9 Basic Stages of a Transaction SELLERBUYER 1. Voluntary offer1. Enquiry 2 Reply to Enquiry Offer - Quotation 2 Reply to Vol. Offer 1st Contact 2nd Contact 3 Order 4a Confirmation, Advice Note, Delivery Note 4b Invoice (or Pro-forma Invoice)Invoice Pro-forma Invoice 5 Payment 6 Delivery Possible problems

10 SELLERBUYER 3 Order 3b Inability to execute the order 5 Payment is DELAYED 6 DELAYED OR UNSATISFACTORY Delivery 5b REMINDERS: 1st Polite;2nd firm; 3rd threatening 5c REPLIES TO REMINDERS (5d Legal Action) 6b COMPLAINTS 6c ADJUSTMENTS Possible problems in the last stages ( Credit status enquiry )

11 ENQUIRY Asks for information about goods required Details of goods Prices and discounts Delivery

12 Reply to an Enquiry It can be sent also in pre-printed form The seller gives the buyer the information requested Very often a catalogue and a price list are enclosed Sometimes the seller quotes prices specifically for this transaction (“quotation”)

13 Order Official document that specifies: Goods that are requested Place and date of delivery Agreed price Sometimes a pre-printed form can be used

14 Invoice Not necessarily a demand of payment It is a document that states: –Type and Quantity of goods supplied –Price per item –Total amount owed –Possible discounts

15 Pro-forma invoice In appearance it is the same as an invoice, but: It charges for the goods IN ADVANCE Delivery will take place only AFTER PAYMENT is received Useful when buyer has to ask the bank for a loan

16 Payment: Methods and instruments OPEN ACCOUNT (cheque, bank transfer) CLEAN COLLECTION (Bill of Exchange without any attached documents) DOCUMENTARY COLLECTION (B/E with Shipping Documents) CASH AGAINST DOCUMENTS or CAD DOCUMENTARY CREDIT

17 -WHO IS INVOLVED IN THE FOLLOWING STAGES? THE BUYER THE SELLER VOLUNTARY OFFER ENQUIRY REQUEST FOR FURTHER INFORMATION ORDER PAYMENT DISPATCH OF THE GOODS REPLY TO ENQUIRY CONFIRMATION AND EXECUTION OF ORDER -THE STAGES ARE IN THE WRONG ORDER. PUT THEM IN THE CORRECT ORDER AS THEY NORMALLY OCCUR IN A BUSINESS TRANSACTION Self Check

18 Credits This is an adaptation of a Presentation by Ms Elsa Bozzaotra


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